In responsibility accounting, why are reports to higher- level managers usually summarized?
It is a system where an organization is divided into different segments where responsibility is assigned to different segment managers for controlling the costs. These managers are given proper authority to keep up their performance. managers are held responsible for achieving the desired result and are also responsible for not delivering the expected standards.
Reports to higher- level managers are usually summarized because:-
1. lower-level managers are often responsible for these detailed costs.
2. detailed reports can obscure the broader issues facing the top managers of an organization.
3. Higher level managers do not have sufficient time for reading the detailed reports.
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