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Test your performance with responsibility accounting

Responsibility accounting is a new system of accounting that will help you test of your performance across a variety of departments and segments .


Responsibility accounting is making of cost sheet under different segments or centers .so it is so easy to determine each employee’s responsibility.

There is also other benefit which can be explained following way:-

Easy calculate the performance of employee:-

Because we have already divides organization in small division of four and five employee’s group and each group or division are responsible for doing any work. So it is easy to determine what their performance is.

We can explain it with following example

A B C is company which is using responsibility accounting system. From above sheet we can see that 2nd divisions performance is better than 1st division’s performance because cost of 2nd division is less than budgeted cost and it is sign of good performance. We can take action against 1st division under the effective control system.

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Accounting Education: Test your performance with responsibility accounting
Test your performance with responsibility accounting
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Accounting Education
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