Plans That Identify Costs and Expenses Under Each Manager's Control

question 119

Multiple Choice

Plans that identify costs and expenses under each manager's control prior to the reporting period,typically based on the flexible budget approach,are called:

• A)Cost accounting systems.
• B)Managerial accounting systems.
• C)Responsibility accounting systems.
• D)Responsibility accounting budgets.
• E)Activity-based accounting systems.

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Definitions:

Recorded

This term refers to the action of documenting financial transactions in the accounting records of a business.

Statement of Financial Position

A financial statement that presents the assets, liabilities, and equity of an entity at a specific date, offering a snapshot of its financial health.

Chart of Accounts

A systematic listing of all accounts used by an organization, making up its general ledger and helping categorize transactions.

Account Numbers

Unique identifiers assigned to individual accounts within a financial recording system to differentiate and track financial transactions.