Which of the following statements regarding responsibility accounting is not correct?
A. It calls for the preparation of responsibility reports listing the budgeted and actual revenue and/or expense items over which the manager has control.
B. It requires top management to prepare a budget for the entire company and communicate that plan to lower levels of management.
C. It is most effective in a decentralized business structure where many managers exert control over various segments of a company's operations.
D. It calls for the preparation of reports containing detailed information regarding the performance of a responsibility center.
Answer: B
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