Asked by Alyssa Cansler on Jul 28, 2024
Verified
Performance reports
The performance reports generated by a responsibility accounting system form a hierarchy of 'performance reports'. Explain what is meant by this term.
Responsibility Accounting System
A system of accounting that segments financial data by areas of responsibility, aiding in performance evaluation and control.
Performance Reports
Documents and records that detail the performance metrics, outcomes, and progress of projects, departments, or the entire organization.
- Explain the importance and structure of performance reports in responsibility accounting systems.
Verified Answer
ZK
Zybrea KnightJul 31, 2024
Final Answer :
The performance reports are tied to the organisational chart. The performance report at each level reflects the aggregate performance of the subordinates that report to the manager at that particular level. Thus, each manager receives reports that reflect their area of responsibility.
Learning Objectives
- Explain the importance and structure of performance reports in responsibility accounting systems.
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