Responsibility accounting cannot be used effectively a. for costs allocated to the responsibility level. b. when budget data can be developed for evaluating the manager's effectiveness in controlling costs. c. for costs that can be directly associated with the specific level of responsibility. d. for costs controllable at the level of responsibility with which they are associated.

Responsibility accounting cannot be used effectively for costs allocated to the responsibility level. In responsibility accounting explains the accounting performance measurement systems. When related to responsibility accounting, it states that larger organizations make it harder to manage over smaller single organizations to manage. Breaking organizations into smaller segments make it easier to account for and keep manage of. 

The correct answer is  "b)  net income overstated, assets unaffected, liabilities understated, and owner's equity overstated."

True because folding a piece of paper is like reflecting one side of the fold through the fold.