Responsibility Accounting

INTRODUCTION Responsibility accounting is the third type of management accounting information.  It is called by that name because the accounting information is structured according to organization units, which are responsibility centers.  Responsibility accounting collects and reports information that is used in an important management function and management control. DEFINITION An information system designed to a measure the performance of that segment of a business for such a given manager is responsible is often referred to as “responsibility accounting system”. A responsibility accounti…