A fundamental principle of responsibility accounting is that
A)managers are accountable only for items they control
B)a manager's span of control should not exceed eight people
C)structured reports should be prepared weekly
D)the information flow is in one direction, top-down

Question

Quizplus · Accepted Answer

A fundamental principle of responsibility accounting is that managers are accountable only for items they control. This means that managers should be responsible only for the costs and revenues that are directly related to their area of responsibility. This principle helps to establish clear lines of accountability and ensures that managers are not held responsible for factors outside their control.

A Fundamental Principle of Responsibility Accounting Is That