Under Responsibility Accounting

question 34

Multiple Choice

Under responsibility accounting,

• A)both controllable and non-controllable costs receive the same attention.
• B)cost centres are NOT classified as responsibility centres since there is no revenue responsibility.
• C)as one moves up each level of responsibility in an organization, the responsibility reports become more detailed.
• D)a manager's performance is evaluated based on matters that are directly under that manager's control.

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Definitions:

Analyze

To examine something methodically and in detail, typically for purposes of explanation and interpretation.

Economic Models

Simplified representations of complex economic processes or systems used to analyze economic activities and predict outcomes.

Details

Specific pieces of information or characteristics about something.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, experimentation, and hypothesis testing.