Activity Accounting

(redirected from Responsibility Accounting)

Activity Accounting

The analysis and reporting of financial and other information on activities, in which the analysis is conducted by the persons or departments responsible for those activities. Activity accounting allows those persons or departments to take credit or blame for the good and bad decisions made over the period of time indicated in the accounting statement. It is used especially in decentralized organizations. Activity accounting is also called responsibility accounting or profitability accounting. See also: Activity-Based Costing.
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He said the Management Accounting techniques brought efficiency and cost reduction in the responsibility accounting and performance monitoring.
They established a formal social responsibility accounting system for state functions as well as an accounting system for merchants and trade (Murray, 1988).
Table 1: Parallel Development of Costing and Control Techniques WESTERN TECHNIQUE CHINESE TECHNIQUE Responsibility accounting Responsibility cost control system Cost Cost/profit centers Cost control center Dashboards/scorecards Utilization of a mixture of financial and nonfinancial key performance metrics for performance evaluation Market-based transfer prices Transfer prices based on overall cost target for value chain Beyond Budgeting Delinking of budget for planning and control purposes; use of "league tables" Target costing Basics of a similar concept
In their paper, "Effects of Organizational Process Change on Responsibility Accounting and Managers' Revelations of Private Knowledge," authors Casey Rowe, Jacob Birnberg and Michael Shields examined the relationship between organizational process change and responsibility accounting within teams.
The effective implementation of responsibility accounting, however, proved difficult.
The client should also estimate and record the cost of cleanup associated with current revenues, closely control material balances and effectively use responsibility accounting.
This book provides an overview of ethical theory and then considers the following specific areas: independence, whistle blowing, mentoring, law and ethics (audit failures), conflicting moral duties (seeking loopholes, issues not affecting the financial statements), professional relationships, gender issues and social responsibility accounting.
The Sumerians, then, were one of the first societies to create internal control and responsibility accounting systems.
Responsibility accounting systems establish profit or cost centers that measure how effectively company resources are consumed.
Additional examples can be found in areas such as planning and budgeting, responsibility accounting, analysis and allocations, performance measurements and management reporting.
The author, Boston University professor David Young, takes a user-oriented approach to topics such as full-cost accounting, differential cost accounting, and responsibility accounting.
lease decisions and live or die by the numbers in their responsibility accounting systems.

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