Responsibility centers. Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the following statements is/are correct for a responsibility accounting system. In a cost center, managers are responsible for controlling costs but not revenue. The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent. To be effective, a good responsibility accounting system must help managers to plan and to control. Costs that are allocated to a responsibility center are normally controllable by the responsibility center manager. I and II only are correct. II and III only are correct. I, II, and III are correct. I, II and IV are correct.
Responsibility centers. Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the following statements is/are correct for a responsibility accounting system. In a cost center, managers are responsible for controlling costs but not revenue. The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent. To be effective, a good responsibility accounting system must help managers to plan and to control. Costs that are allocated to a responsibility center are normally controllable by the responsibility center manager. I and II only are correct. II and III only are correct. I, II, and III are correct. I, II and IV are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Responsibility centers. Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the following statements is/are correct for a responsibility accounting system.
- In a cost center, managers are responsible for controlling costs but not revenue.
- The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent.
- To be effective, a good responsibility accounting system must help managers to plan and to control.
- Costs that are allocated to a responsibility center are normally controllable by the responsibility center manager.
- I and II only are correct.
- II and III only are correct.
- I, II, and III are correct.
- I, II and IV are correct.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education