Chapter 24, Problem 1BPSB

To determine

Introduction:

Responsibility Accounting System: Responsibility Accounting System is an accounting system which reports responsibility for managers and helps in evaluation of the performance of managers.

Controllable Costs: Controllable Costs are the costs which can be controlled by manager’s decisions.

Requirement - 1:

To prepare:

The Responsibility Accounting Performance Reports for each department manager and the plant manager.

To determine

Requirement - 2:

The performance of each manager.