Which of the following is not true regarding a responsibility accounting system?
A) It can be applied at any level of an organization.
B) It should not hold a manager responsible for costs over which the manager has no influence.
C) It is designed to measure the performance of managers in terms of controllable costs.
D) It is only relevant in manufacturing companies.
E) It assigns responsibility for costs to the appropriate managerial level that controls those costs.

Question

Quizplus · Accepted Answer

Responsibility accounting system is relevant in both manufacturing and non-manufacturing companies. Therefore, the statement that it is only relevant in manufacturing companies is not true.

Which of the Following Is Not True Regarding a Responsibility