Responsibility accounting is the third type of management accounting information. It is called by that name because the accounting information is structured according to organization units, which are responsibility centers. Responsibility accounting collects and reports information that is used in an important management function and management control.
An information system designed to a measure the performance of that segment of a business for such a given manager is responsible is often referred to as “responsibility accounting system”.
A responsibility accounting system should reflect the plans and performance of each organization. It is designed to provide timely information for decision making and for the evaluation of performance. In addition to being timely such information should highlight deviations of actual performance from planned performance so that appropriate corrective action can be taken. All items of expense are the responsibility of an individual and should be charged to that
TABLE OF CONTENT
TABLE OF CONTENTvi
1.4Types of responsibility centers
2.1Management control process
2.2Steps in management control
2.3Type of budget
2.4The cash budget
2.5Uses of budget
2.7Reporting and analysis
3.1Control reports and their uses
3.4Technical criteria for report
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