Which Description Listed Below Best Defines "Responsibility Accounting

question 49

Multiple Choice

Which description listed below best defines "responsibility accounting"?

• A)A system for evaluating the performance of each responsibility center and its manager
• B)A budget that projects cash inflows and outflows and the end of period budgeted balance sheet
• C)Details as to how the company expects to go from the beginning cash balance to the desired ending cash balance
• D)A company's plan for purchases of property,plant and equipment,and other long-term assets

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Definitions:

Period Costs

Costs that are expensed in the period in which they are incurred; they are not tied directly to the production process and include items like sales, general, and administrative expenses.

Manufacturing Company

An entity engaged in the production of goods by combining raw materials and components in an industrial process.

Work in Process Inventory

Work in process inventory consists of partially finished goods that are still in the production process at a given point in time.

Overapplied Overhead

A situation where the overhead allocated to products or services exceeds the actual overhead costs incurred.