1 RESPONSIBILITY ACCOUNTING Chapter 12 I. …

1 RESPONSIBILITY ACCOUNTINGC hapter 12I. CHARACTERISTICS OF RESPONSIBILITY ACCOUNTINGA. an ACCOUNTING system that collects, summarizes, and reportsaccounting data relating to the responsibilities of an ACCOUNTING system which tracks and reports costs, expenses,revenues, and operational statistics by area of RESPONSIBILITY ororganizational the system provides information to evaluate each manager onrevenue and expense items over which that manager has primarycontrol (authority to influence).- some reports contain only those items that are controllable bythe RESPONSIBILITY some reports contain both controllable and uncontrollableitems;- in this case, controllable and uncontrollable]e itemsshould be clearly the identification of controllable items is a fundamental taskin RESPONSIBILITY ACCOUNTING and Some Basic to implement a RESPONSIBILITY ACCOUNTING system, the businessmust be organized so that RESPONSIBILITY is assignable toindividual the various managers and their lines of RESPONSIBILITY shouldbe fully the organization chart is usually used as a basis forresponsibility if clear lines of RESPONSIBILITY cannot be determined, it isvery doubtful that RESPONSIBILITY ACCOUNTING can be while decision-making power may be delegated for many items,some decisions (related to particular revenues, expenses, costsor actions) may remain exclusively under the control of several items wi

1 RESPONSIBILITY ACCOUNTING Chapter 12 I. CHARACTERISTICS OF RESPONSIBILITY ACCOUNTING A. Definition. - an accounting system that collects, summarizes, and reports

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