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Adapted Responsibility Accounting

             Responsibility accounting is a system of accounting that recognizes various responsibility or decision centers throughout an organization, and reflects the plans and actions of each of these centers by assigning particular revenues and costs to the one having the pertinent responsibility for making decisions about these revenues and costs.
             2. The benefits that accrue to a company using responsibility accounting include: .
             - The development of responsibility budgets and plans encourages managers to plan ahead and promotes goal similarity.
             - Because of participation in the planning process, the company guidelines established is more readily accepted as achievable.
             - The responsibility accounting plans provide managers with clear guidelines for day-to-day decisions and free management .
             from daily operations. .
             - Responsibility accounting affords management performance evaluation criteria. .
             3. The advantages of responsibility accounting to the managers of a firm include:.
             - Under the guidelines of responsibility accounting, managers are responsible only for those items over which they have control.
             - Because responsibility accounting facilitates the delegation of decision making, managers are afforded greater freedom.
             of action without daily supervision.
             - Managers know what is expected of them and on what basis their performance will be evaluated. .
             - The ability to participate in decision making and exercise control helps managers develop leadership skills. .
             4. The features of the budget presentation that would make it attractive to the managers include:.
             - The managers are only responsible for costs that are directly under their control; arbitrary allocations have been avoided. .
             - The budget presentation shows the managers exactly how their segment fits into the entire company and how their .
             units contribute to the overall well being of the firm. .
             - The presentation clearly depicts those areas each manager is responsible for and establishes the criteria on which.

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