Which Departmental Report Is Not Suitable for Use for Responsibility

question 14

Multiple Choice

Which departmental report is not suitable for use for responsibility accounting purposes?

• A) A report that shows no significant variances.
• B) A report that only includes costs controllable by the manager.
• C) A report that the department manager has not participated in preparing.
• D) A report where a share of all the businesses expenses have been allocated to departments.

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Definitions:

Ethical Issues

Situations or problems requiring a choice between actions that must be evaluated as morally right or wrong based on ethical principles.

Natural Environment

The physical, biological, and chemical surroundings in which an organism lives, including all external factors that affect its survival and development.

Global Economy

The international network of economic activities, markets, and trade relationships between countries.

Economic Interdependence

The mutual reliance between two or more economies on each other for resources, technology, trade, or investment.