16.8 Describe the four different types of responsibility centres. A responsibility centre may be defined as a unit of a firm where an individual manager Is held accountable for the unit’s performance. There are four types of responsibility Responsibility centres – costs or expenses centres, revenue centres, profit centres and Investment centres. Cost or expenses centres are responsibility centres whose manager Are normally accountable for only those costs that are under their control. Revenue Centres are responsibility centres where managers are accountable only for financial Outputs in the form of generating sales revenues.
In conclusion, the building of accountability in an organization is crucial. Accountability Is one word that could mean a million different things for example accountability creates trust, it creates ownership, provides leadership a knowledge that a soldier will be accountable for every thing they 're accountable for A leader does so by eliminating fear, developing trust among the soldiers, being open to their responses, ideas and rewarding them for their choice to be answerable to their responsibilities. Overall accountability is very important in the Army without accountability the Army would not
There are several functions and purposes of cost accounting. Although the income statement and the statement of cost of goods manufactured are valuable in guiding business decisions, they do not supply enough information to achieve the greatest efficiency and profit under competitive conditions. The figures represent total costs, or as my lecturer likes to call it, “too broad” to permit more than general conclusions. Alert management, interested in showing a larger profit, will ask itself vital questions that these totals cannot answer. The answers to such questions require detailed data based on computations that will pinpoint unit costs of products and processes.
Moreover, other three responsiblities are based on the economic reponsibility because the author indicated that without it the others become moot questions. To be more specific, economic responsibility is the foundation of Carroll’s pyramid. The second factor is legal responsibility which is involved in obeying the laws. That means the society expects the business entities not only to operate with the profit motivation but also to comply with the laws as well as regulations of gorvernment. Legal responsibility is regarded as the next layer on the pyramid which is defined as some statements such as “it is important to perform in a manner consistent with expectations of gorvenment and law, to comply with various federal, state, and local regulations, to provide goods and services that at least meet minimal legal requirements, to be a law-abiding corporate citizen and a successful firm is defined as fulfilling its legal requirements”.
Programs Department The cost center level is the lowest organization unit “accounting center” and all transactions are recorded on that level. Throughout the JPBC there is a common chart of account, included in this manual, which identifies: income, expenditure, asset or liability within each department. Excluding the fixed assets, for those all charged to the general management cost center. Compliance with stated procedures is mandatory, except concerning special agreements with the General Director and the Board of General Directors that should be in writing (paragraphs 18.104.22.168). 1.1.1 The Manual This Manual divided into three main segments “parts”: Part Number One, dealing with the accounting matters and includes six chapters respectively focusing upon; Overview, payment, expenses, income & funds, payroll, bank accounts, and fixed assets.
He gives us some assumptions and examples of their potential results and impacts on corporations to express his ideas clearly. In addition, he makes comparisons between being an individual and an executive and mentions the sharp differences between their responsibilities. The writer’s purpose is making it distinguishable and understandable for readers if there is a reality of the doctrine of the social responsibility for business. He aims to show
Being responsible implies having the capacity to fulfil specific commitments. Responsibility is not only inherent in the professional environment. Also, a gesture of responsibility to have the capacity to fulfil social commitments or in student areas. Responsibility is a learning that any human being acquires at the level of emotional intelligence over the years. Responsibility is not something unique to adults because anyone, also children, can take care of a specific activity in a manner commensurate with age.
Profit Center Accounting Overview: Profit Center Accounting helps us to analyze/determine all the profits and losses based on profit center by either period accounting or by cost of sales method. It helps to determine the fixed capital or statistical key figures (for example square meters, number of employees, etc.) profit center wise. This helps an organization to analyze the area of responsibility and delegate the responsibility to different divisions. Profit center can be set up to any productions, geographical factors, or functions to keep the internal management enabled to review the areas of responsibility within their organization.
Cost Centers are focused in encouraging managers on increasing the efficiency of their service without being affected by shifts in demand. Its main advantage is that this type of center is very helpful to reach an optimal quantity or to reduce the prices as low as possible to generate a high profit. Some drawbacks of this system are that there is a high level of uncertainty about optimal quantity and standard costs, another potential problem with cost centers is that a cost center manager has incentives to reduce quality below the optimal level. In an Expense center, the manager has incentives to produce as much as possible and the total value of the center to the rest of the community rises as the quality of the output rises, hence the budget given by the community ( the State in this case) increases with increases in the promised level of output. The advantages of this center is that the manager has a budget he cannot overpass and hence no incentive to go higher than that.
Siegel (2014:221 ) highlights the importance of the interdisciplinary aspect of responsible leadership given a debate about how responsibility should be defined, especially since any definition is heavily impacted by the context within which it takes place. While he supports the view that leaders are responsible only to shareholders to maximize profit, Waldman (2008:121 ) defines responsibility with a much larger scope that includes other stakeholders. The latter’s approach ties responsible leadership to disciplines rooted in stakeholder theory and indeed makes of the leader a champion of movements like corporate social responsibility, corporate social performance, and the likes (Maak & Pless,