Concept explainers
a
Introduction:
The responsibility report is prepared by the management to reflect the sales and costs of their respective controllable segment. While preparing the responsibility report, management only considers the controllable costs.
To prepare: The responsibility report for the finishing department.
b
Introduction:
Report C is the type of responsibility report that is prepared by the successive departmental head. It includes the total cost determined in the previous state of operation (Report D).
To prepare: The report C.
c
Introduction:
Report B is the responsibility report prepared by the vice president of the company. It includes the total cost being incurred in all the departments along with additional expenses incurred by the vice president.
To prepare: The report B.
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ACCOUTING PRIN SET LL INCLUSIVE
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