Only if you were Obi-wan haha… (Star Wars fan btw) The answer is B. This is the explanation per Ninja:
Responsibility accounting is segmented reporting useful in management and control that breaks the enterprise into organization subdivisions that are responsible for costs, profits, and investments according to the unit's ability to control these activities. Each center is judged on the basis of an evaluation of its performance relative to the activities over which it has control.
Variable costs include direct costs that can generally be controlled by the division to which they are allocated. “Actual cost” and “Actual cost plus mark-up” are incorrect because actual costs can be controlled by the cost center. It should not be allowed to pass the excess costs over standard costs on to the next division. “Negotiated price” is incorrect because a negotiated price usually would include some profit margin for the producing division, but that division only exercises control over costs rather than revenues or profit.
So basically bc the profict center cannot have allocated costs that it cannot control then standard variable is the best option since it protects againts that. Right?
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