CIMA BA2 · Chapter 8 · Question 7 of 9
Under the principle of responsibility accounting, on which costs should a manager's performance be judged?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Costs that the manager is able to control or significantly influence
Explanation
Responsibility accounting holds managers accountable for the items they can control. Including apportioned or uncontrollable costs in their performance reports can be unfair and demotivating, so such costs should be shown separately if at all.
More Integrated accounting and management reporting MCQs
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