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Under this system managers are made responsible for the activities of segments. These segments may be called departments or divisions. Eric Kohier defines Responsibility Accounting as “a method of accounting in which costs are identified with persons assumed to be capable of controlling them, rather than with products or functions. It differs from activity accounting, in that it does not in itself require an organizational grouping by activities and Sub-activities or provides a systematic criterion of system design.” Charles T. Homgreen defines “Responsibility Accounting is a system of accounting that recognizes various responsibility centres throughout the organization and reflects the plans and actions of each of these centres by assigning particular revenues and costs to the one having the pertinent responsibility...
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Common topics in this essay:
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