A system of evaluating the performance of each responsibility center and its manager is known as responsibility accounting system.

Question

Quizplus · Accepted Answer

A responsibility accounting system is designed to evaluate the performance of each responsibility center within an organization and the manager responsible for that center. This system helps to track how well each center is managing its resources, including financial, human, and other resources, and to ensure that the center is meeting its goals and objectives. Overall, this system provides a way to hold managers accountable for the performance of their specific areas and to encourage them to make improvements where necessary.

A System of Evaluating the Performance of Each Responsibility Center