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.

---

Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities and resources that go into producing them, aiming for more accurate overhead allocation.

Labor-Related

Refers to factors or issues that pertain to the workforce or employment sector, including wages, working conditions, and labor laws.

Direct Labor-Hours (DLH)

The total hours worked by employees who are directly involved in the production process of goods or services.

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the resources they consume.