A responsibility accounting performance report reports:
A) Only actual costs.
B) Only budgeted costs.
C) Both actual costs and budgeted costs.
D) Only direct costs.
E) Only indirect costs.

Question

Quizplus · Accepted Answer

A responsibility accounting performance report reports both actual costs and budgeted costs to compare how well the responsible unit or individual has performed compared to the budgeted targets. This is important to identify variances and take corrective actions. The report may also include indirect costs and not limited to direct costs. Therefore, the best choice is C.

A Responsibility Accounting Performance Report Reports