A responsibility accounting system holds individual managers accountable for the performance of the business units under their control.
Therefore, responsibility accounting turns the data prepared for product cost and financial reports in conventional accounting into the data to fix manager's responsibility for the fulfillment of the plan and cost differences.
Under responsibility accounting, attention is directed toward individuals, and the basic question relates to "who"is responsible for planning, and spending resources rather than "what"the money was spent for.
Under responsibility accounting, data collected for control are reclassified for product costing.
