ECONOMICS

Detailed explanation-1: -Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs. Proper authority is given to the persons so that they are able to keep up their performance.

Detailed explanation-2: -Responsibility accounting is a kind of management accounting that is accountable for all the management, budgeting, and internal accounting of a company. The primary objective of this accounting is to support all the Planning, costing, and responsibility centres of a company.

Detailed explanation-3: -It is also called profitability accounting. and activity accounting”. According to this definition, the organisation is divided into. various responsibility centres and each centre is responsible for its costs. The.

Detailed explanation-4: -A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports. It is used to give managers specific responsibility for revenues generated, expenses incurred, and/or funds invested.

Detailed explanation-5: -Sec. 2. Definition of Terms. Responsibility Accounting-provides access to cost and revenue information under the supervision of a manager having a direct responsibility for its performance. It is a system that measures the plans (by budgets) and actions (by actual results) of each responsibility center.