A responsibility accounting system ensures that
A)generally accepted accounting principles reporting requirements are met.
B)managers will not be held responsible for items they cannot change.
C)99 percent of businesses utilizing such a system will be profitable.
D)easy correlations between revenues and costs can be drawn.

Question

Quizplus · Accepted Answer

A responsibility accounting system is designed to allocate responsibilities and accountabilities to various managers or departments within an organization. By doing so, it ensures that managers are only held responsible for items they have control over, thereby promoting fairness and accountability. It does not guarantee profitability, GAAP compliance or easy correlation between revenues and costs.

A Responsibility Accounting System Ensures That