“Responsibility Accounting collects and reports planned and actual accounting information about the inputs and outputs of responsibility centers”.It is based on information pertaining to inputs and outputs. The resources utilized in an organization are physical in nature like quantities of materials consumed, hours of labour, etc., are called inputs.
They are converted into a common denominator and expressed in monetary terms called “costs”, for the purpose of managerial control. In a similar way, outputs are based on cost and revenue data.





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