Reference no: EM132960159
Problem 1. What is the basic purpose of a responsibility accounting system?
a. Budgeting c. Authority
b. Motivation d. Variance analysis
Problem 2. A successful responsibility accounting reporting system is dependent upon
a. The correct allocation of controllable variable costs
b. Identification of the management level at which all costs are controllable
c. The proper delegation of responsibility and authority
d. A responsible separation of costs into their fixed and variable components since fixed costs are not controllable and must be eliminated from the performance report
Problem 3. What is the LEAST complex segment or area of responsibility for which costs are allocated?
a. Profit center c. Contribution center
b. Investment center d. Cost center