Responsibility Accounting and Cost Control - 9088 Words

Topic:Responsibility Accounting and Cost Control. Subject: Management control systems Index: |Sr.No |Topic |Page No | |1 |Meaning of Responsibility Accounting |3 | |2 |Steps involved in Responsibility Accounting |5 | |3 |Responsibility Centres |6 | |4 |Cost Centres v/s Responsibility centres†¦show more content†¦Under this system, divisions or units of an organization under a specified authority in a person are developed as responsibility centres and evaluated individually for their performance.† David Fanning defines Responsibility Accounting as a system or mechanism for controlling the wider freedom of action ‘that executive - decision centre manager in other words - are given by senior management and for holding those executives responsible for the consequences of their decisions.’ Robert Anthony defines Responsibility Accounting as â€Å"that type of management accounting that collects and reports both planned and actual accounting information in terms of responsibility centres.† Responsibility Accounting focused main attention on responsibility centres. The managers of different activity centres are responsible for controlling the costs of their centres. Information about cos ts incurred for different activities is supplied to the persons in charge of various centres. The performance is constantly compared to the standards set and this process is very useful in exercising cost controls. Responsibility Accounting is different from cost accounting in the sense that the former lays emphasis on cost control whereas the latter lays emphasis on costShow MoreRelatedThe Impact of Contingencies on Management Accounting System Development.1725 Words   |  7 PagesManagement Accounting SYSTEM 1 3.0 THE IMPACT OF CONTINGENCIES ON MANAGEMENT ACCOUNTING SYSTEM DEVELOPMENT 2 ( i ) Environment 2 ( ii ) Strategies and mission 3 ( iii ) Technology 4 ( iv ) Firm interdependence 4 ( v ) Business unit, firm, and industry variables 5 ( vi ) Knowledge and observables factors 5 ( vii ) Culture 6 4.0 Summary and Conclusions 6 5.0 REFERENCE BOOKs 7 1.0 INTRODUCTION The management of a company needs to develop cost and management accounting systemsRead MoreResponsibility Accounting1350 Words   |  6 PagesRESPONSIBILITY ACCOUNTING Management Accounting - Responsibility Accounting Planning amp; control are essential for achieving good results in any business. 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