Question

Which of the following statements regarding responsibility accounting is not correct? Multiple Choice It requires top management to prepare a budget for the entire company and communicate that plan to lower levels of management. It calls for the preparation of reports containing detailed information regarding the performance of a responsibility center. It calls for the preparation of responsibility reports listing the budgeted and actual revenue and/or expense items over which the manager has control. It is most effective in a decentralized business structure where many managers exert control over various segments of a company's operations.

Answer 1

It is most effective in a centralized business structure where many managers exert control over various segments of a company's operation.

Step-by-step explanation:

Responsibility accounting is a type of accounting in which a particular group of individuals are in charge of overseeing the control of various costs. The individual is solely responsible for any change in the amount of cost control.

Resposibility accounting is a very essential part in the decision making process of the organisation, it also helps to improve performance of employees in various departments of the company.It is also important in the assigning of duties to employees.

Responsibility accounting serves as a guide to the management of an organisation, It helps them to attain their different organisation objectives.