Question 1
Which of the following is the fundamental purpose of responsibility accounting?
◦ to penalize managers for inefficiency
◦ to gather information that will enable future improvement
◦ to create an efficient and centralized organization
◦ to evaluate the performance of managers
Question 2
Which of the following is true of responsibility accounting?
◦ It is a system that measures the plans, budgets, actions, and actual results of a responsibility center.
◦ It is an arrangement of lines of responsibility and authority within a responsibility center.
◦ It explicitly incorporates continuous improvement and changes due to learning curve.
◦ It examines how a result will change if the original plan is not achieved.
True Friendship
Development Accounting
Accounting Question
MANAGEMENT ACCOUNTING
Accounting Information Systems, 4th Edition