A Fundamental Principle of Responsibility Accounting Is That

question 18

Multiple Choice

A fundamental principle of responsibility accounting is that

• A)managers are accountable only for items they control
• B)a manager's span of control should not exceed eight people
• C)structured reports should be prepared weekly
• D)the information flow is in one direction, top-down

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Definitions:

External Users

Individuals or entities outside of an organization who have an interest in the organization's financial information, such as investors and creditors.

Investment Decisions

Choices made by individuals or enterprises regarding where, when, and how much to invest in order to achieve financial goals or maximize returns.

Financial Information

Data related to the financial status of an entity, including balance sheets, income statements, and cash flow reports, used by stakeholders to make informed decisions.

Accounting Records

Documents and books that systematically record financial transactions and positions of a business.