In a Responsibility Accounting System

question 152

Multiple Choice

In a responsibility accounting system:

• A) Controllable costs are assigned to managers who are responsible for them.
• B) Each accounting report contains all items allocated to a responsibility center.
• C) Organized and clear lines of authority and responsibility are only incidental.
• D) All managers at a given level have equal authority and responsibility.
• E) Control over costs belongs only to the top level of management.

Calculate gross profit using different inventory costing methods.

Understand the application of perpetual and periodic inventory systems.

Calculate inventory turnover and interpret its significance.

Derive cost of goods sold using various inventory methods.

---

Definitions:

Practical Intelligence

The ability to solve everyday problems by utilizing knowledge gained from experience in order to adapt to, shape, or select environments.

Selective Optimization

A strategy of focusing on and optimizing personal strengths and compensating for weaknesses, particularly in the context of aging.

With Compensation

Refers to adjustments made to counterbalance or mitigate a deficit or disability, allowing for improved function or achievement of a desired outcome.

Crystallized Intelligence

Refers to the knowledge and skills acquired through experience and education that can be applied to problem-solving situations.