COST ACCOUNTING
RESPONSIBILITY ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Sales of Division A
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Fixed Selling expenses of Division A
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Variable selling expenses of Division A
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Division A’s fair share of the salary of ABC Corporation’s president
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Detailed explanation-1: -A revenue center is an organizational segment in which a manager is held accountable only for revenues. As the name implies, the goal of a revenue center is to generate revenues for the business.
Detailed explanation-2: -Accounting centre is not a part of responsibility accounting.
Detailed explanation-3: -The components of responsibility accounting include inputs and outputs, identification of responsibility center, target, and actual information, responsibility between organization structure and responsibility center, etc.
Detailed explanation-4: -A responsibility-accounting system fosters goal congruence by establishing the performance criteria by which each manager will be evaluated. Development of performance measures and standards for those measures can help to ensure that managers are striving toward goals that support the organization’s overall objectives.