Question

*11) Which of the following is the fundamental purpose of responsibility accounting?*

A) to penalize managers for inefficiency
B) to gather information that will enable future improvement
C) to create an efficient and centralized organization
D) to evaluate the performance of managers
Objective 6.5

Answer 1

The fundamental purpose of responsibility accounting is to evaluate the performance of managers.

Step-by-step explanation:

The fundamental purpose of responsibility accounting is to evaluate the performance of managers. It involves gathering information and assigning responsibility to different managers or departments within an organization. By evaluating their performance, companies can make informed decisions and take appropriate actions to improve efficiency and achieve their goals.