Multiple Select QuestionSelect all that applyThe purpose of a responsibility accounting system is to provide information to: (Check all that apply.)Multiple select question.evaluate the profitability or cost effectiveness of each department's activities.prepare financial statements for creditors and owners.evaluate managers' performance.assign costs and expenses to the managers responsible for controlling them.
Question
Multiple Select QuestionSelect all that applyThe purpose of a responsibility accounting system is to provide information to: (Check all that apply.)Multiple select question.evaluate the profitability or cost effectiveness of each department's activities.prepare financial statements for creditors and owners.evaluate managers' performance.assign costs and expenses to the managers responsible for controlling them.
Solution
The purpose of a responsibility accounting system is to:
- Evaluate the profitability or cost effectiveness of each department's activities.
- Evaluate managers' performance.
- Assign costs and expenses to the managers responsible for controlling them.
These three options are all part of the purpose of a responsibility accounting system. The system is designed to assess the performance of different departments and managers within an organization, and to assign costs and expenses accordingly. However, preparing financial statements for creditors and owners is not a primary purpose of a responsibility accounting system. This task is typically handled by other accounting systems or processes.
Similar Questions
The purpose of a responsibility accounting system is to provide information to: (Check all that apply.)Multiple select question.assign costs and expenses to the managers responsible for controlling them.evaluate the profitability or cost effectiveness of each department's activities.prepare financial statements for creditors and owners.evaluate managers' performance.
A responsibility accounting system provides: (Check all that apply.)Multiple select question.actual cost information data for planning and controllingdifferences between budgeted and actual amountsreports to identify and punish managers who fail to control costs and expenses
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