Introduction Responsibility accounting is the practice that focuses on providing financial information useful in evaluating efficiency and effectiveness of managers or department heads, on the basis of financial performance directly under their control. Responsibility accounting is also based on the assumption that every cost incurred must be the responsibility of one person somewhere in the company. Examples could include; the cost of rent being assigned to the person who negotiates and signs the rental agreements; or the cost of an employee’s salary being the responsibility of that person’s direct manager, or human resources manager (S. Bragg, 2010). The importance of responsibility accounting is that it’s essential to very large organizations, but extremely advantageous as well for small to medium sized (SMB) businesses in general, because this method of accounting allows a business to explain whose, what, when, where and why, and justify if necessary, money is invested and spent concerning a company’s finances. There is also the aspect of better management through collection of pertinent data and reporting of this data from each individual department within larger organizations. There are many examples of companies that today use responsibility accounting principles. HP Utilization Individual responsibility itself is the underlying idea behind this type of accounting. Responsibility focuses on performance measurement. Basically the idea is that large organizations are almost impossible to manage as a single concern, and must be separated into controllable parts. These parts or divisions are referred to as responsibility centers including: revenue centers, cost centers, profit centers and investment centers. This approach all... ... middle of paper ... ...nting? definition and meaning. Retrieved from www.accountingtools.com/: http://www.accountingtools.com/questions-and-answers/what-is-responsibility-accounting.html References Hafeezur, R. (2011, December 8). Management Accounting - Responsibilty Accounting. Retrieved from http://hubpages.com/: http://hubpages.com/hub/Management-Accounting-Responsibility-Accounting Martin, J. (1987). Responsibilty Accounting Summary. Retrieved from http://maaw.info/: http://maaw.info/ResponACCSum.htm Newsweek. (2011, September 16). 100 Best Global Brans. Retrieved from www.businessweek.com/: http://www.businessweek.com/interactive_reports/best_global_brands_2009.html S. Bragg. (2010, June 7). What is responsibility accounting? definition and meaning. Retrieved from www.accountingtools.com/: http://www.accountingtools.com/questions-and-answers/what-is-responsibility-accounting.html
Accountability defined as the responsibility of an individual in a position of an employee or student. In this section, I am going further to mention some situations and how does this situation demonstrate the responsibility that reflected from the dimensions of my personality, including conditions from communication, diversity awareness, decision-making and problem solving. First am going to point at some of my situation that I experienced as a student and then build it up to the situation that I faced in the work placement program as an employee.
Bibliography: BusinessDictionary.com, (2015). What is management accounting? Definition and meaning. [Online] Available at: http://www.businessdictionary.com/definition/management-accounting.html [Accessed 23 Jan. 2015].
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
Upon the take over of the managerial positions, Janet Moyer of the new car sales had a first challenge of making a sale through a costumer who wanted to trade his old car with a new car.
Business requires the appropriation of funds and the analysis of how these funds are and should be used. The primary task of an accountant is to account for all transactions that were done over a period of time for a specific organization and to arrange these facts into financial statements that can be analyzed. The two main types of accounting, financial and managerial accounting are used to evaluate a businesses financial status through financial information that is specific to the audience. Although financial and managerial accounting use similar primary financial statements, the analysis of the documents and the information presented differs tremendously primarily because the financial accounting statements are directed to external users and the managerial accounting statements are directed to internal users. This difference varies the information presented on the financial statements and the analysis that can be surmised from reviewing the documents.
Managerial Accounting addresses those aspects that relates to an individual organization return on investments (ROI). (Albrecht, Stice, Stice, & Skousen, 2002) A company’s profitability depends on periodic attention to its assets turnover and profit margin. This process is designed to support the decision making that adds value to an organization. Organizations are sometimes broad and divisional. Planning, controlling, and evaluating is key in the effective decision making process. (Albrecht, Stice, Stice, & Skousen, 2002) An organization must make decisions about its future products, services, operations, and investments. It must begin a tracking process for cost, quality, and performance. Finally it must analyze the results, and variances, providing feedback to assess areas of personnel, divisions, products, and processes. (Albrecht, Stice, Stice, & Skousen, 2002)
Cost Accounting: Its role and ethical considerations Introduction: Accounting is the process of identifying, measuring, and communicating economic information about an entity for the purpose of making decisions and informed judgements. The major areas of within the accounting are: Financial Accounting, Managerial Accounting/Cost Accounting and Auditing- Public Accounting Managerial accounting is concerned with the use of economic and financial information to plan and control the activities of an entity and to support the management in planning and decision-making process. Cost accounting is the subset of managerial accounting and it helps management in determination and accumulation of product, process or service cost. Role of Cost Accounting: Increased competition and uncertain business conditions have put significant pressure on corporate management to make informed business decisions and maximize their company?s financial performance. In response to this pressure, a range of management accounting tools and techniques has emerged.
One theory that is used in accounting is that of Conservatism. This notion states that all liabilities should be accounted for even if there is a possibility that they will never take place. This same principle applies to liabilities but not to revenues. The only revenues that can be accounted for are the ones that have already taken place. Any liability that might happen should be recorded and at the higher possible amount. For instance, if a company is sued for any reason and the legal department determines that the possible liability to pay claims will be somew...
In its current practice, the roles and functions of cost accounting includes additional functions. More specifically, it can be described as more than an inventory tracking system. This is because cost accounting entails defining the charges of activities and goods (Horngren & Srikant, 2000). Because of its many roles and functions, this accounting method has been of great help to growth and expansion of business planning and management. Again, the reports offer assistance in the planning and growth projections for different business functions and units within the organization. The information cost accountants offer different uses, some of which aid in the controllership function, as well as the industrial
Beschorner, T (2012, Sep 30). What is Corporate Social Responsibility (CSR)?. retrieved May 6, 2014, from YouTube Web Site: http://www.youtube.com/watch?v=E0NkGtNU_9w
I am an accountant major who is willing to graduate from Crowder College in the coming semester. Moreover, I have done two years degree of supply chain management where it mainly deals with movement of goods from the supplier to the purchaser. Besides that, currently I am an accountant clerk where I perform multiple tasks like recording and posting business transactions in the general ledger accounts. In addition to that I process bills so that all payments are made at the required date to avoid any inconveniences. I am a resourceful and result oriented person who is seeking for a senior accountant position at EAG Inc. usually, I browse the indeed website and check any newly posted positions that matches the position I am highly interested
Accountability describes your obligation as an individual to this organization, to account for your activities, to except responsibility for them and to disclose all results in a transparent manner. You'll also be held accountable for any money or property that you're entrusted with.
The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics.
After finish the whole set of tutorials, our perspective of accounting become more professional. The study of accounting is not just for the knowledge and skill, but also for the critical thinking as a professional. Accounting professional is not just about the job that we what to take for our future career, but also the behavior that we need to have for our daily life.
Zimmermann, K. A. (2014, Jan 2014). What is Culture - A Definition of Culture. Retrieved 03 21, 2014, from LiveScience: http://www.livescience.com/21478-what-is-culture-definition-of-culture.html