Successful Operation of a Responsibility Accounting System Requires All of the Following

question 63

Multiple Choice

Successful operation of a responsibility accounting system requires all of the following except:

• A)Budgets prepared for each responsibility center.
• B)The use of a bonus pool based on ROA (return on assets).
• C)An accounting system which measures the performance of each responsibility center.
• D)The preparation of timely performance reports.

---

Definitions:

Biased

Showing prejudice for or against someone or something in a way that's considered unfair or unequal.

Contrast Errors

A common mistake in performance appraisal where an employee's evaluation is unfairly influenced by comparing them to others rather than against objective standards.

Rank Employees

The process of evaluating and ordering employees based on their performance, skills, or other relevant criteria.

Trait-oriented Evaluation

An assessment approach that focuses on the specific traits or characteristics of employees in relation to job performance.