The Reason for Tracing a Cost in Responsibility Accounting Is

question 129

Multiple Choice

The reason for tracing a cost in responsibility accounting is to determine which of the following?

• A) whether it is fixed or variable
• B) who has the best knowledge about why the costs arose
• C) what activity caused the costs to be incurred
• D) either who has the best knowledge about why the costs arose or, what activity caused the costs to be incurred
• E) whether it is production or administrative

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Definitions:

Additional Information

Data or details provided that supplement the main information, offering more context or depth.

Prior Probabilities

The probabilities assigned to events or hypotheses before any empirical data is taken into account.

Posterior Probabilities

Probabilities that are updated after considering new evidence, often used in Bayesian statistics.

Prior Probabilities

The likelihoods allocated to events or hypotheses prior to considering any pertinent evidence.