In a responsibility accounting system:
A) Controllable costs are assigned to managers who are responsible for them.
B) Each accounting report contains all items allocated to a responsibility center.
C) Organized and clear lines of authority and responsibility are only incidental.
D) All managers at a given level have equal authority and responsibility.
E) Control over costs belongs only to the top level of management.

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Quizplus · Accepted Answer

In a responsibility accounting system, controllable costs are assigned to managers who are responsible for them. This helps in holding managers accountable for their performance and ensuring efficient resource allocation.

In a Responsibility Accounting System