A. Budgeting is an element of responsibility accounting. However, it is not the main purpose.
B. Authority is an element of responsibility accounting. However, it is not the main purpose.
C. Motivation is the basic purpose of a responsibility accounting. According to responsibility accounting,
managers are responsible for those factors that they can control. Their performance is evaluated on how well they manage the areas over which they exercise influence, whether they are costs, revenues or both.
D. Variance analysis is an element of responsibility accounting. However, it is not the main purpose.
