In a responsibility accounting system:
A)Managers are responsible for their departments' controllable costs.
B)Each accounting report contains all items allocated to a responsibility center.
C)Organized and clear lines of authority and responsibility are only incidental.
D)All managers at a given level have equal authority and responsibility.
E)Outputs of the departments are not part of the evaluation process.

Question

Quizplus · Accepted Answer

Responsibility accounting allocates a company's costs to the individual managers who are responsible for controlling them. Each manager is responsible for managing the costs associated with their department or division. By doing so, responsibility accounting holds each manager accountable for their performance and encourages them to work toward achieving their goals. Therefore, managers are responsible for their departments' controllable costs.

In a Responsibility Accounting System