What Is Responsibility of Accounting

According to allbusiness. com, responsibility business relationship is defined as a collection, summarization, and reporting of financial information well-nigh various decision centers (responsibility centers) throughout an organization (allbusiness. com). The article also explains that responsibility accounting helps an organization trace tolls, revenues and profits to the individual animal trainers who are amenable for decision making. Responsibility accounting also mea reals performance of each manager in regards to how he or she manages these cost, revenues, and profits.I am not sure if my keep party uses responsibility accounting however, I will assume the company does due to its many departments. Our company has a research department that I would assume is a cost center. The company also has a cost center for each region to keep track of all costs related to the spending of office materials, travel expenses, and administrative costs. The profit centers at bottom our com pany is our sales departments and brand aggroup departments. Each brand team deals with different categories of medications.Examples of the different brand team departments are, cardiovascular brand team, the respiratory brand team, the oncology brand team, and the CNS brand team. The different brand teams take in different managers who are responsible for the budgets, calculating ROI and implementing appropriate costing systems. As mentioned in an article in MAAW online, the advantages to responsibility accounting within the company I am employed by fit the reasons explained below. Provides a charge to manage an organization that would otherwise be unmanageable. * Assigning responsibility to cast down level managers allows higher level managers to pursue other activities such as long term planning and policy making. * Provides a way to locomote lower level managers and workers. Managers and workers in an individualistic system tend to be motivated by measurements that emphas ize their individual performances (MAAW, 2010).