Select the false statement regarding responsibility accounting (RA).

It calls for the preparation of reports containing detailed information regarding the performance of a responsibility center.

It is most effective in a decentralized business structure where many managers exert control over various segments of a company's operations.

It calls for the preparation of responsibility reports listing the budgeted and actual revenue and/or expense items over which the manager has control.

It requires top management to prepare a plan of expected performance for the entire company and communicate that plan to lower levels of management.