A responsibility accounting system recognizes that control over costs and expenses belong to:Multiple choice question.the board of directorslower level managementseveral levels of managementupper level management

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.

Which of the following statements is incorrect regarding responsibility accounting?Multiple choice question.Responsibility accounting holds managers accountable for the revenues and expenses over which they have control.Responsibility accounting refers to the process of evaluating top management on the decisions made by lower-level managers.Responsibility accounting divides the organization into "responsibility centers" to evaluate managers' decisions.Responsibility accounting links lower-level managers' decisions with the outcomes of those decisions.

Multiple Choice QuestionIn responsibility accounting, unit managers are evaluated on:Multiple choice question.costs they cannot controluncontrollable costscosts they can controlcosts in decentralized units

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

Multiple Select QuestionSelect all that applyThe 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.evaluate managers' performance.prepare financial statements for creditors and owners.