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:

Actual Overhead Costs

The real expenses associated with manufacturing overhead, including all indirect costs incurred.

Overhead Costs Applied

The allocation of overhead expenses, including indirect costs, to specific cost objects like products or services.

Finished Goods

Finished goods are completed products ready for sale, having passed through all stages of production and manufacturing.

Direct Labor Cost

The expense associated with labor directly involved in the production process of goods or services, distinguishing from indirect labor costs like maintenance personnel.