Pick one of the questions below. Explain your response in paragraph or two.
1. What is the fundamental principle of responsibility accounting?
2. List five important factors that should be considered in designing reports for a responsibility accounting system.
3. How soon should accounting reports be prepared after the end of the performance measurement period? Explain.
4. Name and describe three types of responsibility centers.
5. Describe a segment of a business enterprise that is best treated as an expense center. List four indirect expenses that may be allocated to such an expense center.
6. Compare and contrast an expense center and an investment center.
7. What purpose is served by setting transfer prices?
8.What is the advantage of using investment centers as a basis for performance evaluation?
"Performance Measurement & Responsibility Accounting Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0
1. What is the fundamental principle of responsibility accounting?
2. List five important factors that should be considered in designing reports for a responsibility accounting system.
3. How soon should accounting reports be prepared after the end of the performance measurement period? Explain.
4. Name and describe three types of responsibility centers.
5. Describe a segment of a business enterprise that is best treated as an expense center. List four indirect expenses that may be allocated to such an expense center.
6. Compare and contrast an expense center and an investment center.
7. What purpose is served by setting transfer prices?
8.What is the advantage of using investment centers as a basis for performance evaluation?
"Performance Measurement & Responsibility Accounting Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0