The correct answer is D. 1, 3 and 4.
Responsibility accounting is a system of accounting that focuses on the responsibility of managers for the costs and revenues that they control. It does this by assigning responsibility centers to managers and then measuring the performance of each responsibility center.
There are several benefits to responsibility accounting. First, it helps to improve communication and coordination between different parts of the organization. Second, it can help to improve decision-making by providing managers with more information about the costs and revenues that they control. Third, it can help to improve performance by motivating managers to control costs and increase revenues.
Option 1 is incorrect because responsibility accounting does not facilitate the centralization of decision taking. In fact, it can often lead to decentralization of decision making, as managers are given more responsibility for the costs and revenues that they control.
Option 2 is correct because responsibility accounting provides a system of closer control. By assigning responsibility centers to managers and then measuring the performance of each responsibility center, responsibility accounting can help to identify areas where costs are too high or revenues are too low. This information can then be used to take corrective action.
Option 3 is correct because responsibility accounting measures the performance of individuals in an objective manner. This is because responsibility accounting focuses on the costs and revenues that managers control, rather than on the personal characteristics of the managers.
Option 4 is correct because responsibility accounting develops a sense of cost consciousness among managers and their subordinates. This is because responsibility accounting makes managers aware of the costs that they are responsible for and the impact that their decisions have on costs.