Definition of Responsibility Accounting
Responsibility accounting involves the internal accounting and budgeting for each responsibility center within a company. The objective of responsibility accounting is to assist in the planning and control of a company’s responsibility centers.
Example of Responsibility Accounting
Typically each decentralized department and division within a company will receive a monthly report showing its budgeted and actual amounts for the most recent month as well as the year-to-date budgeted and actual amounts.
