An Accounting System That Is Set Up to Control Costs

question 9

Multiple Choice

An accounting system that is set up to control costs and evaluate managers' performance by assigning costs to the managers responsible for controlling them is called a(n) :

• A) Responsibility accounting system.
• B) Cost accounting system.
• C) Activity-based accounting system.
• D) Financial accounting system.
• E) Managerial accounting system.

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Definitions:

Forecasts

Forecasts are predictions or estimates of future events or trends, based on analysis of existing data and modeling.

Financial Plan

A comprehensive evaluation of an individual's or organization's current and future financial state by using known variables to predict future cash flows, asset values, and withdrawal plans.

Treasurer

An official responsible for overseeing the management of a company's or organization's finances.

Chief Financial Officer

An executive at a high level tasked with overseeing a corporation's financial activities, which encompasses financial strategizing, managing risks, and maintaining financial records.