responsibility (noun, re-spon-si-bil-i-ty, \ rɪˌspɑːnsəˈbɪləti \) accounting (noun, ac-count-ing, \ əˈkaʊntɪŋ \)
Definition: is an accounting system that allows a company to focus on gathering and analyzing financial information that is useful in determining the efficiency and productivity of its managers and\or department heads by judging the financial performance of the employees they are directly in charge of. Responsibility accounting operates adhering to the belief that each acquired cost has to be the responsibility of a single individual located somewhere in the organization’s structure.
In a Sentence:
- Our responsibility accounting reports suggest that Owen Lewis isn’t effective in negotiating with the landlord of our office building, as we continue to pay more and more with each year without a solid reason for the increasing price.
- Since HL Jet introduced responsibility accounting, it became evident that the marketing department isn’t working efficiently enough.
- Thanks to the figures displayed in the responsibility accounting report, our purchasing manager was given a raise for lowering component costs.
Synonyms and related words: cash basis accounting, activity accounting, settlement date accounting, accounting
