Performance Measurement and the Balanced Scorecard
Submitted by lev_lafayette on Sun, 11/01/2009 - 14:22Responsibility accounting occurs when an entity is structured into strategic business units and the performance of these units is measured in terms of accounting results. Managers are then held accountable and rewarded on the basis of the results of their department. Assign responsibility; establish performance measures; evaluate performance; assign rewards. A cost centre is a business unit; it can be a function, activity or an item of equipment. When identified, a manager can be assigned responsibility for it.