Which of the following statements about responsibility accounting is true?
A) Managers should be held responsible for all price variances that occur within their department.
B) Managers should be held responsible for all revenues and costs that occur within their department.
C) Managers should be responsible for all investment decisions that occur within their department.
D) Managers should be held responsible for only those things under their control.

Question

Quizplus · Accepted Answer

Responsibility accounting holds managers accountable for only those things that are under their control, such as costs, revenues, and performance measures. Holding managers responsible for things outside of their control, such as investment decisions, would not be appropriate. Managers should only be responsible for aspects of the business that they can affect and improve. Therefore, option D is the correct answer.

Which of the Following Statements About Responsibility Accounting Is True