Responsibility Accounting

Responsibility accounting involves accumulating and reporting costs on the basis of individual manager who has authority to make day to day decisions.Under responsibility accounting the evaluation of manager's performance is based only on the matters directly under managers control.it can be also called as profitability accounting.In this system,the accountability is established according to the responsibility delegated to various levels of management and they are made responsible to give adequate feedback in terms of delegated responsibility.The basic idea behind responsibility accounting is that managers's performance in comparison to budgeted results