Responsibility for cost control system

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Is the following statement correct? If so, please explain why.

"A good Control System places the blame for every unfavorable variance upon someone in the organization. Without affixing the blame, no one will take responsibility for Cost Controls."

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This is not correct. Variances should be divided in to those which are controllable and uncontrollable. Only controllable variances should be used to judge a ...

Solution Summary

This solution discusses cost control systems.

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