$1$ Point

Grading comment:

Kirtch 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.

Choice $1$ of $4$:I, II$,$ and III are correctChoice $2$ of $4$:II and III only are correctChoice $3$ of $4$:I, II and IV are correctChoice $4$ of $4$:I and II only are correct