One behavioral factor that must be considered when responsibilities are assigned to managers is

A. Managers should be held responsible for only actual revenues and actual costs and not for standard revenues or standard costs. B. Managers with responsibility for direct labor costs should compute efficiency variances based on labor used rather than labor purchased. C. Managers should not be allowed to influence the plans and standards for those activities over which they have substantial control. D. Managers should be held responsible for only those cost, revenues, or assets over which they have substantial control. E. Managers in decentralized organizations should be held responsible for the costs, revenues, and assets in all departments in the organization, whether they directly control those departments or not.

Question

Amirah Mendez

Business

26 December, 18:20

One behavioral factor that must be considered when responsibilities are assigned to managers is

A. Managers should be held responsible for only actual revenues and actual costs and not for standard revenues or standard costs. B. Managers with responsibility for direct labor costs should compute efficiency variances based on labor used rather than labor purchased. C. Managers should not be allowed to influence the plans and standards for those activities over which they have substantial control. D. Managers should be held responsible for only those cost, revenues, or assets over which they have substantial control. E. Managers in decentralized organizations should be held responsible for the costs, revenues, and assets in all departments in the organization, whether they directly control those departments or not.

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Answers (1)

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Jared Haynes · Answer 1

The correct answer is letter "A": Managers should be held responsible for only actual revenues and actual costs and not for standard revenues or standard costs.

Explanation:

Standard revenues and costs in a company are those calculated after several years of operations. It measures an approximate of how much profits the organization could earn and how much is needed to keep the operations going. Managers should only be evaluated on the actual profits and costs incurred in the firm since only with them they have control.