A responsibility accounting system:
A) Is designed to measure the performance of managers in terms of controllable costs.
B) Assigns responsibility for costs to the appropriate managerial level that controls those costs.
C) Should not hold a manager responsible for costs over which the manager has no influence.
D) Can be applied at any level of an organization.
E) All of these.

Question

Quizplus · Accepted Answer

All of the given options are characteristics of a responsibility accounting system. Such a system measures the performance of managers by assigning responsibility for costs to the appropriate level and holding them accountable only for the costs they can control. The system can be applied at any level of the organization, allowing for greater accountability and improved performance.

A Responsibility Accounting System