Which of the Following Statements Regarding Responsibility Accounting Is Not

question 60

Multiple Choice

Which of the following statements regarding responsibility accounting is not correct?

• A) It calls for the preparation of reports containing detailed information regarding the performance of a responsibility center.
• B) It is most effective in a decentralized business structure where many managers exert control over various segments of a company's operations.
• C) It calls for the preparation of responsibility reports listing the budgeted and actual revenue and/or expense items over which the manager has control.
• D) It requires top management to prepare a budget for the entire company and communicate that plan to lower levels of management.