CMA Adapted Hersh Company uses a performance reporting system that reflects the company's decentralization of decision making. The departmental performance report shows one line of data for each subordinate who reports to the group vice president. The data presented show the actual costs incurred during the period, the budgeted costs, and all vari- ances from budget for that subordinate's department. Hersh Company is using a type of system called

a. contribution accounting.

b. cost-benefit accounting.

c. flexible budgeting.

d. program budgeting.

e. responsibility accounting.