ECONOMICS

Detailed explanation-1: -The responsibility accounting system makes the following important assumptions: (1) The areas of responsibility are defined for which managers should be held responsible. (2) Managers are only charged with the items and responsibility over which they can exercise a significant degree of direct control.

Detailed explanation-2: -The main objective of managerial accounting is to maximize profit and minimize losses. It is concerned with the presentation of data to predict inconsistencies in finances that help managers make important decisions. Its scope is quite vast and includes several business operations.

Detailed explanation-3: -What Is Behavioral Accounting? Behavioral accounting takes into account key decision-makers’ experience and incentives as part of the evaluation of a company. It also examines how accounting practices and processes, in turn, affect the behavior and processes of personnel working in a company.

Detailed explanation-4: -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.