Which statement is not true? Responsibility accounting
A)involves both a top-down and bottom-up flow of information
B)acknowledges that some economic events cannot be traced to any manager
C)creates a budget
D)compares actual performance with budget

Question

Quizplus · Accepted Answer

Responsibility accounting does not acknowledge that some economic events cannot be traced to any manager. Instead, it focuses on identifying managers who are responsible for specific cost or revenue centers and holding them accountable for the performance of those centers. Therefore, statement B is not true.

Which Statement Is Not True? Responsibility Accounting