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.
Question
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.
Solution
The purpose of a responsibility accounting system is to:
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Assign costs and expenses to the managers responsible for controlling them: This is true. Responsibility accounting involves assigning costs and expenses to different departments or managers within an organization. This allows for better tracking and control of costs.
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Evaluate the profitability or cost effectiveness of each department's activities: This is also true. By assigning costs and expenses to different departments, the organization can evaluate which departments are most cost effective and profitable.
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Prepare financial statements for creditors and owners: This is not necessarily true. While responsibility accounting can contribute to the preparation of financial statements by providing detailed information about costs and expenses, its primary purpose is not to prepare financial statements.
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Evaluate managers' performance: This is true. Responsibility accounting allows an organization to evaluate a manager's performance by examining the costs and expenses they are responsible for controlling. This can provide insight into a manager's effectiveness and efficiency.
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
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
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
Cost accounting systems are used to:Multiple ChoiceAccumulate production and period costs and assign them to products or services.Accumulate production costs and assign them to products or services.Accumulate period cost and assign them to products or services.Accumulate production costs and assign them to Raw Materials Inventory.Analyze efficiency and effectiveness of inventory management.
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