Responsibility Accounting

Responsibility accounting is the term used to describe an accounting system that plans, measure, and evaluates organizational performance along lines of responsibilities. Revenue and cost are accumulated and reported by centers of responsibility.

Responsibility centers are are segment of the organizations that are accountable for certain task. it is assumed that there is one person in the responsibility center who has control over those task.
Each responsibility center in the organization is charged only with the revenue and cost over which it has control.this system it was claimed, result in the preparation of accounting statements for all levels of management designed primarily so that they can effectively used by the operating people as a tool in controlling their operations and their cost.