The Reason for Tracing a Cost in Responsibility Accounting Is

Multiple Choice

The reason for tracing a cost in responsibility accounting is to determine which of the following?

A) whether it is fixed or variable
B) who has the best knowledge about why the costs arose
C) what activity caused the costs to be incurred
D) either who has the best knowledge about why the costs arose or, what activity caused the costs to be incurred
E) whether it is production or administration