Chapter 24, Problem 5DQ

To determine

Concept Introduction:

Responsibility accounting:

Responsibility accounting is assigning a person for the control of costs. There are so many tools for cost control like budgetary planning, standard costing, etc. Responsibility accounting focuses on men rather than costs. Men are made responsible for the cost control of their departments. They have to provide responsibility reports to the management, on a timely basis.

The reason for summarizing the reports submitted to higher-level managers in responsibility accounting