Asked by Seema AlHiraki on Jun 26, 2024

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Responsibility accounting performance reports:

A) Become more detailed at higher levels of management.
B) Are usually summarized at higher levels of management.
C) Are equally detailed at all levels of management.
D) Are useful in any format.
E) Are irrelevant at the highest level of management.

Responsibility Accounting

Responsibility accounting is a system of accounting in which costs and revenues are tracked and managed in relation to the individuals or departments that have control over those costs and revenues.

Performance Reports

Documents or dashboards that provide information on the financial or operational performance of a business or department.

Management Levels

The hierarchical layers within an organization, typically including top-level, middle, and lower management, each with different responsibilities.

  • Comprehend the structure and purpose of responsibility accounting performance reports.
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Verified Answer

XA
Xandra Alexa BarraJun 29, 2024
Final Answer :
B
Explanation :
Responsibility accounting performance reports are usually summarized at higher levels of management. This is because top-level managers are generally concerned with overall performance and do not need the same level of detail as lower-level managers responsible for specific departments or processes. Therefore, reports become more summarized as they move up the management hierarchy.