ECONOMICS

Detailed explanation-1: -The objective of responsibility accounting is to accumulate costs and revenue for each responsibility centre so that deviations from budgeted performance can be attributed to the individual manager in charge of that centre.

Detailed explanation-2: -The responsibility accounting system is a mechanism by which costs and revenue are accumulated and reported to the top management to make an effective decision. In addition, it gives freedom to individuals to amplify their skills to reduce the cost and increase the organization’s revenue.

Detailed explanation-3: -The correct answer is True. Under responsibility accounting, the management is responsible for delegating the cost control, having people are made responsible for the management of expenses.

Detailed explanation-4: -What is Responsibility Accounting? 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.