A Company Using Responsibility Accounting System Decides to Exclude All

question 172

Multiple Choice

A company using responsibility accounting system decides to exclude all uncontrollable costs from a manager's performance report. Jenson is the machine supervisor. Which of the following costs will impact Jenson's performance report?

• A) rent and taxes paid on by the company
• B) cost of materials used in manufacture
• C) direct labor cost
• D) cost of power consumed by the plant

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Definitions:

Society Values

The principles, standards, or ideals shared by members of a society regarding what is desirable or important.

Marginal Revenue Product

Incremental income produced from the application of one additional unit of resources such as labor or capital.

Derived Demand

Demand for a commodity, service, etc., that is a consequence of the demand for something else.

Inputs Demand

The requirement for resources and materials necessary to produce goods and services in an economy.