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In a Responsibility Accounting System

Question 131

Multiple Choice

In a responsibility accounting system:


A) Managers are responsible for their departments' controllable costs.
B) Each accounting report contains all items allocated to a responsibility center.
C) Organized and clear lines of authority and responsibility are only incidental.
D) All managers at a given level have equal authority and responsibility.
E) Outputs of the departments are not part of the evaluation process.

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