1. Which of the following statements best reflects the underlying rationale of responsibility accounting?

a) Managers will perform best when they are held accountable only for what they can control.

b) Responsibility for success is shared among managers, and performance should be evaluated as a group.

c) Accountability should be applied at the lowest level of management, but control must remain centralized at the highest level.

d) Managers should be given increased levels of responsibility once they have demonstrated that they can control costs

2. Sue and Jane Smith are writing the vision for their new consignment shop. Because they want their employees and business to grow and reach goals, like all organization visions, it should be positive and inspiring, pushing their organization and the workers to achieve goals that they believe are not possible.

True or False