A. Segment reporting is the reporting of results by segment: product line, geography or some other distinguishing characteristic. This is not descriptive of the method used by this company.
B. Contribution margin reporting breaks costs down into fixed and variable costs. While this may be used in conjunction with responsibility accounting, this by itself is not describing the method used by the company.
C. Absorption cost accounting relates to the allocation of fixed costs. This is not descriptive of the method used by this company.
D. Responsibility accounting is a system in which cost and revenue data is reported based on who (manager or division) is able to control them or is responsible for them. This is the system described in the question.
