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11 a responsibility accounting system could a exclude all uncontrollable costs b exc 4300326


11) A responsibility accounting system could:

A) exclude all uncontrollable costs

B) exclude controllable costs

C) segregate uncontrollable costs from controllable costs

D) Both A and C are correct.


12) Which statement about controllability is NOT true:

A) few costs are clearly under the sole influence of one manager

B) holds managers responsible for uncontrollable costs

C) with a long enough time span, all costs will come under somebody's control

D) describes the degree of influence that managers have over a particular item


13) Controllability may be difficult to pinpoint because of all the following EXCEPT:

A) some costs depend on market conditions

B) current managers may have inherited inefficiencies of a previous manager

C) the current use of stretch or challenge targets

D) few costs are under the sole influence of one manager


14) Responsibility accounting:

A) emphasizes controllability

B) focuses on whom should be asked about the information

C) attempts to assign blame for problems to a specific manager

D) All of these answers are correct.

15) A primary consideration in assigning a cost to a responsibility center is:

A) whether the cost is fixed or variable

B) whether the cost is direct or indirect

C) who can best control the change in that cost

D) where in the organizational structure the cost was incurred


16) A responsibility center is a part, segment, or subunit of an organization, whose manager is accountable for a specified set of activities.


17) Each manager, regardless of level, is in charge of a responsibility center.


18) In a cost center, a manager is responsible for investments, revenues, and costs.


19) A packaging department is most likely a profit center.

20) Variances between actual and budgeted amounts inform management about performance relative to the budget.




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