In a responsibility accounting environment,upper managers evaluate the performance of the
A)On those items over which the unit managers have control.
B)Not only on cost,but also on revenues.
C)On the overall profit of the organization.
D)None of these answer choices of correct.

Question

Quizplus · Accepted Answer

Responsibility accounting involves holding specific managers responsible for the performance of certain areas of a business. Upper managers evaluate the performance of these lower-level managers based on items that are directly under their control. This includes costs, revenues, and other factors that the unit managers can influence. Therefore, choice A is the best answer as it reflects this aspect of responsibility accounting. Choice B is incorrect as it implies that only revenues are evaluated, while choice C is too broad and does not accurately reflect the specific nature of responsibility accounting.

In a Responsibility Accounting Environment,upper Managers Evaluate the Performance of the