COST ACCOUNTING
RESPONSIBILITY ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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business matters can be controlled as effectively as possible by controlling the people responsible for carrying out the operations
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responsibility accounting is a system used to measure the performance of responsibility centers
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responsibility accounting is intended for each person along with their roles and tasks for the accumulation and reporting of data as a whole
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responsibility accounting is only reserved for certain responsibility centers partially
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Detailed explanation-1: -Responsibility accounting segregates uncontrollable costs from controllable costs.
Detailed explanation-2: -Accounting centre is not a part of responsibility accounting. Responsibility accounting basically refers to a system in which different divisions of the organisation are established as responsibility centres. Was this answer helpful?
Detailed explanation-3: -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.
Detailed explanation-4: -There are three types of responsibility centers. These are the investment center, cost center, and profit center. Budget center is not a type of responsibility center.