Which of the Following Is True About a Strategic-Based Responsibility

question 1

Multiple Choice

Which of the following is true about a strategic-based responsibility accounting system?

• A)It fails to connect with an organization's overall mission and strategy.
• B)It expands the number of responsibility dimensions from one to two.
• C)It does not work for firms operating in dynamic environments.
• D)It can take the form of a Balanced Scorecard.

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Definitions:

Retained Earnings

The portion of a company’s net profits which is kept within the company instead of being paid out to the shareholders as dividends.

Dividend Reinvestment Plans

Programs that allow investors to automatically reinvest their cash dividends into additional shares or fractional shares of the underlying stock.

Open Market

A freely competitive market where buyers and sellers can engage in transactions with minimal government intervention.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage in relation to the assets they own.