CAF-7 · Chapter 11 · Question 15 of 15
Which of the following describes 'Responsibility Accounting'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A system where costs, revenues, and investments are traced to the specific individual manager who has control over them
Explanation
Responsibility accounting is a system that identifies specific responsibility centers (cost centers, profit centers, investment centers) and holds the individual manager accountable only for the variances and items they can actually control.
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