COST ACCOUNTING
RESPONSIBILITY ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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responsibility accounting manages and provides information that is within the control of each individual manager
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Conventional accounting cannot provide information related to the person in charge of the activity reported in the report
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responsibility accounting information consists of activity planning and its realization
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Conventional accounting includes planning, controlling, and reporting on the realization of certain parts that are held accountable
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Detailed explanation-1: -Cash basis records money when it actually comes in and goes out of your business, traditional accounting records income and expenses when you invoice your customers or receive a bill. Responsibility accounting involves a company’s internal accounting and budgeting.
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: -Accounting centre is not applicable to responsibility accounting.
Detailed explanation-4: -Responsibility accounting segregates uncontrollable costs from controllable costs.