Assume that you are the Assistant City Accountant of the Emerging City. Assume further that your office has responsibility centers wherein the use of approved budget and generation of income are accounted and attributed to the respective cost/ revenue center heads.

 

As the cost center head, you would authorize disbursements for the food served during your staff meetings. In one of your meetings, you had two staff in attendance to discuss office matters. Accordingly, you authorized a disbursement for the meals of the attendees in that meeting.

However, your manager, the City Accountant, called your attention and directed you to refrain from using your budget for meals during staff meetings especially for a few number of attendees. She further figured out that there should be at least eight attendees in a staff meeting before you could provide meals to those in attendance.

 

Based on what you have learned on the responsibility accounting topic, how would you explain your side to your manager? What are your recommendations, if any?

Answer rating: 100% (QA)

I would explain to my manager that I decided to approve the disbursement for the two employees meals ... View the full answer