Question

______________ is a technique used to filter cost information contained in performance reports to each manager within the organization at an appropriate level of detail or summarization.

1) Managerial reporting
2) Responsibility reporting
3) Financial reporting
4) Segment reporting

Answer 1

Responsibility reporting is the technique used to filter cost information within an organization to managers at the right level of detail.

Step-by-step explanation:

The technique used to filter cost information contained in performance reports to each manager within the organization at an appropriate level of detail or summarization is Responsibility reporting. This reporting structure is essential as it conveys information pertinent to each manager's level of responsibility, helping them make informed decisions and manage their segments effectively. It answers critical questions like who is responsible for what, what costs they are accountable for, when they incurred these costs, where the costs were incurred, why they took on these costs, and how they should manage them going forward.