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Commerce · Q554

Costing

Graduate and Post Graduate · Commerce · question 554

Q554

System which measures budget, action and plan of each responsibility center is known as

A.
budgeted accounting
B.
action accounting
C.
planned accounting
D.
responsibility accounting
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
System which measures budget, action and plan of each responsibility center is known as responsibility accounting. Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs.