Question

 

Responsibility accounting

16 Feb 2026
Answer :
Word Count : 228
Responsibility accounting is a system of managerial accounting that classifies the organization into various responsibility centers and assigns accountability to managers for the performance of their respective units. It is based on the principle that managers should be evaluated only on the costs and revenues they can control. This approach facilitates effective managerial decision-making by linking authority with responsibility and performance measurement.
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