A Responsibility Accounting System Ensures That

question 94

Multiple Choice

A responsibility accounting system ensures that

• A)generally accepted accounting principles reporting requirements are met.
• B)managers will not be held responsible for items they cannot change.
• C)99 percent of businesses utilizing such a system will be profitable.
• D)easy correlations between revenues and costs can be drawn.

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Definitions:

Crash Cost

The additional costs associated with rushing or compressing a project schedule to complete it in the shortest time possible.

CPM Network

Critical Path Method Network, a project management tool that helps in determining the longest path of planned tasks to the end of a project.

Normal Time

The average observed time, adjusted for pace.

Normal Cost

The standard expenses incurred during the production of goods or services, including direct labor, materials, and overhead costs.