An accounting system that is set up to control costs and evaluate managers' performance by assigning costs to the managers responsible for controlling them is called a(n):
A)Cost accounting system.
B)Managerial accounting system.
C)Responsibility accounting system.
D)Financial accounting system.
E)Activity-based accounting system.

Question

Quizplus · Accepted Answer

A responsibility accounting system assigns costs to managers responsible for controlling them, allowing for the evaluation of their performance. This is different from a cost accounting system, which simply tracks the costs of production, or an activity-based accounting system, which allocates costs based on the activities that contribute to those costs. Managerial accounting systems and financial accounting systems are broader categories that may include responsibility accounting as a component.

An Accounting System That Is Set Up to Control Costs