Which of the following is NOT an advantage of strategic-based responsibility accounting?
A) It includes perspectives that serve as a source of competitive advantage.
B) Change efforts are directed by the mission and strategy.
C) Responsibility is centralized within the organization.
D) All are advantages of strategic-based responsibility accounting.

Question

Quizplus · Accepted Answer

Responsibility accounting is a system that makes individuals responsible for specific areas of an organization's operations. Strategic-based responsibility accounting aligns responsibility centers with an organization's mission and strategy. The advantages it offers include using strategic perspectives to attain competitive advantage and directing change efforts by the mission and strategy. However, it does not centralize responsibility within the organization. In fact, the decentralization of responsibility is a fundamental part of responsibility accounting. Therefore, option C is incorrect. Option D is also incorrect as it implies that all options are correct, which is not the case.

Which of the Following Is NOT an Advantage of Strategic-Based