A Principle of Responsibility Accounting Is That Managers Are Responsible

question 29

True/False

A principle of responsibility accounting is that managers are responsible for controllable and uncontrollable costs.

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Definitions:

Corporate Bond

A debt security issued by a corporation to raise financing for capital improvements, expansion, or other operational needs.

Profits

Earnings resulting from the successful management of a business, calculated as total revenues minus total costs.

Retains Earnings

The portion of a company's profits that are kept or withheld from shareholders to reinvest in the business or pay off debt.

Net Worth

The total assets minus total liabilities of an individual or company, indicating financial health.