In managerial accounting, who is primarily financially responsible for the decisions and performance of a specific department within an organization?

• A. Shareholder
• B. Department Manager
• C. Tax Consultant
• D. External Auditor

Answer: (B)

Verified step by step guidance

1. Understand the roles of each individual mentioned in the options: Shareholder, Department Manager, Tax Consultant, and External Auditor.
2. Recognize that shareholders are owners of the company and are not directly involved in the day-to-day operations or decision-making of specific departments.
3. Understand that a tax consultant provides advice on tax-related matters and does not have financial responsibility for a department's decisions or performance.
4. Acknowledge that an external auditor is responsible for reviewing the financial statements of the organization to ensure accuracy and compliance, but they do not manage or make decisions for specific departments.
5. Conclude that the Department Manager is the individual who is financially responsible for the decisions and performance of a specific department, as they oversee operations, budgets, and outcomes within their area of responsibility.