Q.5 Specify any four essential conditions for the success of Responsibility Accounting.
सफल उत्तरदायित्व लेखांकन के लिए कोई चार आवश्यक शर्तें बताइए।
Ans:
- Support of all levels of management through “Participative budgeting
- The system is based on individual manager’s responsibility. It is the manager who incur costs and should be held accountable for each expenditure
- Separation of costs into controllable and non-controllable categories.
- Restructuring the organization along the decision-making lines of authority.
| Source : IGNOU PDF : Page Number : 74 |
| Keywords: “Participative budgeting, individual manager’s , non-controllable categories. |
| Extra Info : Other An organization plan which establishes objectives and goals to be achieved.The delegation of authority and responsibility for cost incurrence through a system of policies and procedures.Motivation of the individual by developing standards of performance together with incentives. |