Responsibility accounting is a system that

Question

Quizplus · Accepted Answer

Responsibility accounting is a system that measures the plans and actions of responsibility centres. It involves tracking the performance of various departments or individuals responsible for specific tasks or objectives within an organization. This helps in evaluating the effectiveness of each unit and making improvements where necessary. It is closely tied to the master budget as it helps in monitoring the progress of each department towards achieving its targets. It requires subdividing all management levels to ensure that each level knows its roles and responsibilities. It is most appropriate at all levels of the organization, not just at the top levels.

Responsibility Accounting Is a System That