Practicing Success
Practicing Success
CUET Preparation Today
| Assertion: Responsibility accounting refers to
systematic appraisal of the overall
performance of the management of
an organisation.
Reasoning: The purpose of management audit is to review the efficiency and effectiveness of management and to improve its performance in future periods. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A. Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A. Assertion (A) is true but Reasoning (R) is not correct. Assertion (A) is not true but Reasoning (R) is correct. |
| Assertion (A) is not true but Reasoning (R) is correct. |
| It is called management audit. Responsibility accounting is a system of accounting in which different sections, divisions and departments of an organisation are set up as ‘Responsibility Centres’. The head of the centre is responsible for achieving the target set for his centre. Management audit refers to systematic appraisal of the overall performance of the management of an organisation. The purpose is to review the efficiency and effectiveness of management and to improve its performance in future periods. It is helpful in identifying the deficiencies in the performance of management functions. Thus, management audit may be defined as evaluation of the functioning, performance and effectiveness of management of an organisation. |
