COST ACCOUNTING
RESPONSIBILITY ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It measures the plans and actions of each responsibility center.
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It budgets to emphasize that for which each responsibility center is accountable.
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It calculates variances between budgeted and actual for each responsibility center.
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It identifies managers at fault for operating problems by reports for each responsibility center.
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Detailed explanation-1: -Answer and Explanation: The correct answer is d) It identifies managers at fault for operating problems by reports for each responsibility center.
Detailed explanation-2: -Accounting centre is not applicable to responsibility accounting.
Detailed explanation-3: -Sales center is not a responsibility center as it only defines the amount of sales of an organisation in a particular year or period.
Detailed explanation-4: -Answer-D . responsibility accounting segregates uncontrollable costs from controllable costs Definition-The systems of costing like standard costing and…
Detailed explanation-5: -Features of Responsibility Accounting Responsibility accounting system can be implemented only on the basis of due information of input and output. The monetary term of inputs is costs, and outputs are correspondingly called revenues. Hence, cost and revenue information is crucial for responsibility accounting.