responsibility accounting

These budgets provide a basis for responsibility accounting.

In Responsibility Accounting revenues and costs information are collected and reported by responsibility centers.

With Nanda, Indjejikian argues that incentive problems are a crucial aspect of responsibility accounting.

Answer guide: Responsibility accounting is a system that identifies decision centres and the managers responsible for these centres (e.g. departments).

They must review cost center and responsibility accounting, management review and budgetary control and the route of authorization for non-routine transactions.

Anthony & Young (1999) showed that management accounting has three major subdivisions: full cost accounting, differential accounting and management control or responsibility accounting.

"Dynamic Incentives and Responsibility Accounting," with Dhananjay Nanda, Journal of Accounting and Economics, April 1999.