A Responsibility Accounting System

question 42

Multiple Choice

A responsibility accounting system:

• A) Is designed to measure the performance of managers in terms of uncontrollable costs.
• B) Assigns responsibility for costs to the top managerial level.
• C) Is designed to hold a manager responsible for costs over which the manager has no influence.
• D) Can be applied at any level of an organization.
• E) Is well suited to work in an environment without clear lines of responsibility and authority.

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Definitions:

Posterior Chamber

The fluid-filled space between the iris and the lens of the eye, containing aqueous humor.

Iris

The iris is the colored part of the eye that controls the size of the pupil and the amount of light reaching the retina.

Lens

A transparent structure in the eye that focuses light rays onto the retina to create clear images.

Retina

A layer of tissue at the back of the eye that senses light and sends visual signals to the brain.