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What is Responsibility Accounting & Transfer Pricing about?

Responsibility accounting is a system that identifies responsibility centers within an organization and measures their performance. It encourages goal congruence by evaluating managers based on matters within their control. Effective responsibility accounting requires clear lines of authority, defined responsibilities, and performance measures. Responsibility centers include cost centers, revenue centers, profit centers, and investment centers. Transfer pricing refers to the value assigned to goods transfer

Author

KatrinaDelaCruz

Language

EN