Select the Incorrect Statement Concerning the Application of the Controllability

question 90

Multiple Choice

Select the incorrect statement concerning the application of the controllability concept to responsibility accounting.

• A) As a practical matter, control of costs or revenues may be shared rather than absolute.
• B) The concept of control is crucial to an effective responsibility accounting system.
• C) Managers lose motivation when they are held accountable for actions that are beyond their scope of control.
• D) Each manager should be evaluated on the costs but not the revenues that are under his or her control.

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Definitions:

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