Responsibility Accounting

Responsibility accounting is a system that measures the results of each responsibility center and compares them with some expected outcome. In a - Select your answer -centralizeddecentralizedItem 1 setting, lower-level managers make and implement decisions. In a - Select your answer -centralizeddecentralizedItem 2 setting, lower-level managers are responsible only for implementing decisions.

Select "Yes" if the center is one of the main types of accounting responsibility centers, else please select "No" from the below dropdowns.

Cost center	- Select your answer -YesNoItem 3
Expense center	- Select your answer -YesNoItem 4
Industrial center	- Select your answer -YesNoItem 5
Revenue center	- Select your answer -YesNoItem 6
Investment center	- Select your answer -YesNoItem 7
Design center	- Select your answer -YesNoItem 8
Profit center	- Select your answer -YesNoItem 9
Factory center	- Select your answer -YesNoItem 10

Top management chooses to decentralize for a number of reasons, including:

	Local managers can make better decisions using local information.
	Local managers can provide more timely response to changing conditions.
	Cognitive limitations make it difficult for any one central manager to be fully knowledgeable about all products and markets.
	Decentralization permits training and motivating local managers.
	Top management is free to concentrate on long-range activities and strategic planning. Decentralization enhances competition among the divisions.