A Successful Responsibility Accounting Reporting System Is Dependent Upon (CMA

Multiple Choice

A successful responsibility accounting reporting system is dependent upon (CMA adapted) :

A) The correct allocation of controllable variable costs.
B) Identification of the management level at which all costs are controllable.
C) The proper delegation of responsibility and authority.
D) A reasonable separation of costs into their fixed and variable components since fixed costs are not controllable and must be eliminated from the responsibility report.