The effect of responsibility accounting is to personalise the accounting system

Question

Quizplus · Accepted Answer

Responsibility accounting is a system that assigns responsibilities to individual managers or departments within an organization. The purpose of this is to make individuals more accountable for their own areas of responsibility, which in turn helps to achieve the overall goals and objectives of the organization. Budgeting is an important part of this process, as it allows managers to plan and control their expenses, monitor performance, and make sure that resources are being used in the most efficient and effective way possible. Therefore, the effect of responsibility accounting is to personalise the accounting system, making it more relevant and meaningful to individual managers, and helping them to better understand their role in achieving the goals of the organization.

The Effect of Responsibility Accounting Is to Personalise the Accounting