Which of the following is not one of the positive attributes of responsibility accounting

A) Senior management can more easily identify employees to blame.
B) Managers should understand the source of significant variances to budget and should be prepared to explain the reasons for discrepancies to senior management.
C) Managers should take the initiative to correct unfavourable discrepancies.
D) By assigning responsibilities for each cost, better cost control should result.

Responsibility Accounting

A system of accountability in which managers are held responsible for those items of revenue and cost—and only those items—over which they can exert significant control. The managers are held responsible for differences between budgeted and actual results.

Significant Variances

Discrepancies between planned and actual figures that are large enough to warrant attention and possibly corrective action by management.

Cost Control

A process of managing and monitoring expenses to keep business operations within a budget.