Which of the Following Is Not an Essential Element of Responsibility

question 35

Multiple Choice

Which of the following is not an essential element of responsibility accounting?

• A)assigning responsibility
• B)establishing performance measures
• C)evaluating performance
• D)ridiculing poor performers

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Definitions:

Partnerships

A legal form of business operation between two or more individuals who share management and profits.

Agency Problem

A conflict of interest arising between decision-makers (agents) and the owners (principals) due to differing goals.

Managements' Compensation

The financial and non-financial rewards given to corporate management, which may include salary, bonuses, stock options, and other benefits.

Auditors

Professionals or firms appointed to review and verify an organization's financial records and statements to ensure accuracy and compliance with accounting standards.