The purpose of a responsibility accounting system is to provide information to: (Check all that apply.)Multiple select question.evaluate managers' performance.prepare financial statements for creditors and owners.assign costs and expenses to the managers responsible for controlling them.evaluate the profitability or cost effectiveness of each department's activities.
Question
The purpose of a responsibility accounting system is to provide information to: (Check all that apply.)Multiple select question.evaluate managers' performance.prepare financial statements for creditors and owners.assign costs and expenses to the managers responsible for controlling them.evaluate the profitability or cost effectiveness of each department's activities.
Solution
The purpose of a responsibility accounting system is to:
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Evaluate managers' performance: This is correct. Responsibility accounting involves assigning specific responsibilities to managers and then evaluating their performance in fulfilling these responsibilities.
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Prepare financial statements for creditors and owners: This is not necessarily correct. While responsibility accounting can contribute to the overall financial reporting process, its primary purpose is not to prepare financial statements.
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Assign costs and expenses to the managers responsible for controlling them: This is correct. One of the key aspects of responsibility accounting is the assignment of costs and expenses to the managers who have the authority to incur and control these costs.
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Evaluate the profitability or cost effectiveness of each department's activities: This is correct. Responsibility accounting allows for the evaluation of the profitability or cost effectiveness of different departments or segments within an organization.
So, the correct answers are: evaluate managers' performance, assign costs and expenses to the managers responsible for controlling them, and evaluate the profitability or cost effectiveness of each department's activities.
Similar Questions
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.
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
What is the primary goal of management accounting?To provide information that can be quantified in monetary termsTo provide information to shareholdersTo provide information that improves the quality of managers' decisionsTo provide information that conforms to the accounting regulations
What are two major purposes of accounting?Multiple select question.to provide economic predictions by which to guide the firmto help managers make well-informed decisionsto determine the strength of the firm's stakeholdersto report financial information to interested stakeholders
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
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