Asked by Megan McDermott on Jul 11, 2024

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What is responsibility accounting? Explain the purpose of responsibility accounting.

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information about different areas of responsibility within an organization.

  • Apprehend the importance and operational aspects of responsibility accounting in the administration of performance.
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KK
Kenzie KimesJul 13, 2024
Final Answer :
Responsibility accounting is a method of controlling operations that involves accumulating and reporting costs (and revenues where relevant) on the basis of the manager who has the authority to make the day-to-day decisions about the items. The purpose of responsibility accounting is to evaluate a manager's performance on the basis of matters directly under that manager's control.