In a Responsibility Accounting System

question 204

Multiple Choice

In a responsibility accounting system:

• A) Outputs of the departments are not part of the evaluation process.
• B) All managers at a given level have equal authority and responsibility.
• C) Each accounting report contains all items allocated to a responsibility center.
• D) Managers are responsible for their departments' controllable costs.
• E) Organized and clear lines of authority and responsibility are only incidental.

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Definitions:

Normal Distribution

A continuous probability distribution that is symmetric around its mean, indicating that data near the mean are more frequent in occurrence than data far from the mean.

Negative Value

A number that is less than zero, representing a deficit or loss in various contexts.

z

A statistical measure that represents the number of standard deviations an element is from the mean of its population.

Standard Normal Random Variable

A variable that follows a normal distribution with a mean of 0 and a standard deviation of 1.