Indicate whether each of the following statements is true or false A. responsibi
ID: 2571046 • Letter: I
Question
Indicate whether each of the following statements is true or false
A. responsibility reports prepared for higher level managers have less detail than the reports prepared for lower level managers
B. The amount of detail in a responsibility report should be such that managers can focus on significant deviations from expectations.
C. The controllability concept means that managers should be evaluated based on revenues and costs they can control.
D. If a manager is to be held responsible for a revenue or expense, he/she must have complete control over that item.
E. A critical feature of responsibility reports is that they must be precise, even if it takes more time to prepare.
Explanation / Answer
A- True- because detailed report are prepared at lower level and concise reports are prepared at high level of management
B-True- it focuses on performance measurement and deviation of actual performance with the standard one.
C- True- managers are responsible for the cost or revenue of their responsibility areas
D- True- Yes manager should have complete control if he is held repsonsible for revenue or expense
E- False- it should be on time to maintain the relevance of information