Asked by Susan Hudak on May 13, 2024
Verified
In a responsibility accounting reporting system as one moves up each level of responsibility in an organization the responsibility reports become more summarized and show less detailed information.
Responsibility Accounting
A system of accounting that segments financial information by areas of responsibility within an organization, aiding in budgeting and performance evaluation.
Responsibility Reports
Reports designed to evaluate the financial performance of different segments of an organization, focusing on areas under a manager's control.
- Comprehend the organization and division within responsibility accounting.
Verified Answer
CI
Chadrick IngramMay 14, 2024
Final Answer :
True
Explanation :
This is because each level of responsibility is concerned with their own specific area and should only be presented with information that is relevant to their decision making. As one moves up the hierarchy, the reports become more aggregated and summarized, as higher-level managers are more concerned with the big picture and overall performance.
Learning Objectives
- Comprehend the organization and division within responsibility accounting.
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