Which Statement Is Not True? Responsibility Accounting

question 67

Multiple Choice

Which statement is not true? Responsibility accounting

• A)involves both a top-down and bottom-up flow of information
• B)acknowledges that some economic events cannot be traced to any manager
• C)creates a budget
• D)compares actual performance with budget

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Definitions:

Labor

Human effort, both physical and mental, used in the production of goods and services.

Production Possibilities

The various combinations of goods and services that can be produced from a fixed set of resources.

Circular-Flow Diagram

An economic model depicting how money, goods, and services move through an economy between households and firms.

Economy

An organized system of production, distribution, and consumption of goods and services within a specific geographical area, involving various agents and market forces.