Detailed Answer
Answer (D) is correct. Responsibility accounting stresses that managers should only be held responsible for factors under their control. To achieve this objective, the operations of the business are broken down into responsibility centers. Costs are classified as controllable and noncontrollable to assign responsibility. The assignment of responsibility implies that some revenues and costs can be changed through effective management. A responsibility accounting system should have certain controls that provide for feedback reports indicating deviations from expectations. Management may then focus on those deviations for either reinforcement or correction.