Responsibility Accounting Includes: I. Monitoring Primarily for Mistakes

question 26

Multiple Choice

Responsibility accounting includes:
I. Monitoring primarily for mistakes
II. Assigning authority to subunit managers
III. Measuring the performance of subunit managers

• A)I and II only
• B)I and III only
• C)II and III only
• D)I, II, and III

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Definitions:

Risk-free Return

The return on an investment with no risk of financial loss, typically represented by government bonds.

Standard Deviation

A statistical measure of the dispersion or variability in a data set, commonly used to gauge the risk associated with a financial investment.

Defined Contribution Plan

A retirement savings plan where contributions are defined, but future benefits depend on investment performance.

Risk-free Return

The theoretical return on investment with no risk of financial loss, often represented by the yield on risk-free government bonds.