Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the following statements is/are correct for a responsibility accounting system.

i. In a cost center, managers are responsible for controlling costs but not revenue.

ii. The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent.

iii. To be effective, a good responsibility accounting system must help managers to plan and to control.

iv. Costs that are allocated to a responsibility center are normally controllable by the responsibility center manager.

1. I and II only are correct.

2. II and III only are correct.

3. I, II, and III are correct.

4. I, II, and IV are correct.