Question

The approach of evaluating managerial performance using multiple criteria employing both quantitative and qualitative measures is called:

	A.	responsibility accounting
	B.	management by exception
	C.	balanced scorecard
	D.	variance analysis

Answer 1

A. Responsibility accounting

The approach of evaluating managerial performance using multiple criteria employing both quantitive and qualitative measures is called responsibility accounting. It is a system of collecting and presenting of accounting that segregates and identifies revenue and/Or cost and the resultant profitability with the areas of personal responsibility in order to evaluate the performance of persons to whom the responsibility is assigned to carry out the tasks.

It main focus is on responsibility centers to reduce costs. It recognises various responsibility centers throughout the organization and reflects the plans as prepared. Thus it uses both quantitative and qualitative measures.