In Responsibility Accounting Systems,managers Never Are Held Responsible for Items

question 62

True/False

In responsibility accounting systems,managers never are held responsible for items over which they have less than absolute control.

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Definitions:

Intermediate Calculations

Steps in the analytical process that involve manipulating basic data to derive more meaningful information.

Absorption Costing

An accounting method that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Cost-plus Pricing

A pricing strategy where a fixed percentage or markup is added to the total cost of producing a product or service to determine its selling price.

Return on Investment

A measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments, calculated by dividing the benefit (return) of an investment by the cost of the investment.