In a responsibility accounting system:

A) Managers are responsible for their departments' controllable costs.
B) Each accounting report contains all items allocated to a responsibility center.
C) Organized and clear lines of authority and responsibility are only incidental.
D) All managers at a given level have equal authority and responsibility.
E) Outputs of the departments are not part of the evaluation process.

Controllable Costs

Expenses that a manager or business can influence or manage directly, such as supplies, marketing expenses, and staff wages.

Responsibility Accounting System

A system of accounting that segments financial data and operational data by areas of responsibility, facilitating monitoring and assessment of individual departments or managers.

Responsibility Center

A segment within an organization with its own budgets and financial targets, where the managers are accountable for its performance.