Responsibility Accounting
Explain the term Responsibility Accounting and types of responsibility centres with example?
Expert
Responsibility accounting is a management control system based on the principles of delegating and locating responsibility. Managers are held responsible for the variances in the actual and budgeted performances.
Responsibility accounting is a “system of accounting in which costs and revenues are accumulated and reported to the managers on the basis of the manager’s control over the costs and revenues. The managerial accounting system that ties budgeting and performance reporting to a decentralized organization is called responsibility accounting.”
The implementation of responsibility accounting system is possible by determination of Responsibility centre. There various types of responsibility centres are namely:-
Illustration:
The concept of responsibility accounting shall be explained with the help of the example of United Service Automobile Association (USAA). The company is a fortune 500 company offering valuable services like banking, investing and insurance to people or families of those serving United States Military. The company is a pioneer in direct marketing.
The local public utilities commission has been charged with inspecting and reporting utility problems in the area. They have three electrical inspectors and two gas inspectors, each available for 40 hours , to analyze structures in their respective areas of expertise.
Explain the term Contingent Liabilities?
A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities
Specify intuition behind NPV capital budgeting framework?
Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets. How will non-tradable asset be priced?
What is Bond market and how it execute?
to what extent does risk and term structure affects interest rates of financial instruments.
What would you do when upper management issues a new policy and it was problematic to you? Would you pursue the new policy?
Explain characteristics of the international and the domestic banks.
Explain three important trends which have prevailed in the international business during last two decades.
18,76,764
1925127 Asked
3,689
Active Tutors
1439872
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!