Question

Responsibility Accounting leads to better utilization of centresâ€.
Substantiate.
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Answer 1

Answer:

Advantages of Responsibility Accounting:

It creates a sense of efficiency within individual employees as their work and achievements will be reviewed. It guides the management to plan and structure the future expenditure and revenue of a company. Being a cost control tool, it creates 'cost consciousness' among workers.

Explanation:

Essential Features of Responsibility Accounting:

Inputs and Outputs or Costs and Revenues: ...

Planned and Actual Information or Use of Budgeting: ...

Identification of Responsibility Centres: ...

Relationship between Organisation Structure and Responsibility Accounting System