Which One of the Following Describes a Responsibility Report

question 66

Multiple Choice

Which one of the following describes a responsibility report?

• A)It is prepared using the CVP income statement format.
• B)It shows all costs that relate to a particular manager's division.
• C)It shows only the variable costs in a manager's division.
• D)It is prepared at the highest level of managerial responsibility.

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Definitions:

Financing Activities

Comprises transactions that result in changes in the size and composition of the equity capital or borrowings of an entity. Examples include issuing bonds, repaying bank loans, and paying dividends.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Stock Dividend

A distribution of shares of stock to its stockholders.