Archive | Responsibility Accounting

Top 14 Principles of Responsibility Accounting | Cost Accounting

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 […]

5 Main Types of Responsibility Centre

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 […]

Notes on Responsibility Accounting

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 […]

Responsibility Accounting: Meaning, Steps and Limitations

In this article we will discuss about Responsibility Accounting:- 1. Steps in Responsibility Accounting 2. Centres 3. Limitations. Steps in Responsibility Accounting: To make responsibility accounting effective and efficient, the following steps are suggested: (i) Targets are set and should be communicated to each manager Or executive. (ii) A continuous appraisal of actual performance is […]

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