The following points highlight the top fourteen principles of responsibility accounting. 1. Determination of responsibility centres by dividing the organisation into various responsibility centres. 2. A target is fixed for each responsibility centre in consultation with the person responsible for the responsibility centre. 3. Actual performance is compared with the target. 4. The variances from the budgeted plan are analysed [...]
The following points highlight the five main types of responsibility centre. The types are: 1. Cost Centre 2. Revenue Centre 3. Profit Centre 4. Contribution Centre 5. Investment Centre. Responsibility Centre: Type # 1. Cost Centre: These are segments in which managers are responsible for costs incurred but have no revenue responsibilities. The performance of each cost centre is evaluated by [...]
Notes on Responsibility Accounting:- 1. Definition of Responsibility Accounting 2. Concept of Responsibility Accounting 3. Essential Features 4. Advantages 5. Major Difficulties. Contents: Notes on the Definition of Responsibility Accounting Notes on the Concept of Responsibility Accounting Notes on the Essential Features of Responsibility Accounting Notes on the Advantages of Responsibility Accounting Notes on the Major Difficulties Encountered in Introducing [...]