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The Stonebrook Company uses a performance reporting system that reflects the company's decentralization of decision making. The departmental performance reports show actual costs incurred during the period against budgeted costs. Any variances from the budget are assigned to the individual department manager who controls the costs. Stonebrook is using a type of system called A. Transfer-pricing accounting. B. Activity-based budgeting. C. Flexible budgeting. D. Responsibility accounting.
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