Which Departmental Report Is Not Suitable for Use for Responsibility

question 59

Multiple Choice

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

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

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Definitions:

Equity Modes

Various methods or approaches for a company to raise capital through the sale of shares in the business to investors.

Joint Ventures

Business arrangements where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or business activity.

Economic Dissimilarities

The differences in economic conditions, structures, and performance between regions, countries, or groups.

Liability of Foreignness

The inherent disadvantages that foreign firms experience in host countries due to their non-native status, which can include cultural, legal, and economic barriers.