Question

For what does responsibility accounting hold managers responsible?

A) Profitability
B) Revenue
C) Expenses
D) All of the above

Answer 1

Responsibility accounting holds managers accountable for all aspects of financial management within their control, including profitability, revenue, and expenses (D).

Step-by-step explanation:

Responsibility accounting holds managers responsible for D) All of the above: Profitability, Revenue, and Expenses. This system is designed to track the performance of individual segments or managers within an organization, and managers are held accountable for the financial outcomes they can control.

Just like in many jobs where managers set expectations for their employees' performance, in responsibility accounting, managers are expected to meet certain financial targets that pertain to their particular area of control. It includes all aspects of financial management, from generating revenue to managing costs and ultimately affecting the profit of their division or area of responsibility.