2015 PASS PAPER QUESTION

Question 6 (25 marks) (i) (ii) (iii) (iv) A) Define responsibility accounting and describe the role that responsibility centers play in performance management and evaluation. (4 marks) Explain how properly linked performance incentives and measures add value for all stakeholders in performance management and evaluation. (4 marks) Identify the objectives and rules used to establish prices of goods and services, and relate pricing issues to the management cycle (8 marks) Define cost volume profit analysis and discuss how managers use it as a tool for planning and control (4 marks) Define cost behavior and explain how managers use this concept in the management cycle. 5 marks)