RESPONSIBILITY ACCOUNTING

Responsibility Accounting

Table of Contents

Introduction1

Areas of responsibility accounting2

Importance of Administrative Control2

Types of control3

Guide or directional control3

Selective control3

Control after the action3

Administrative control objectives3

Diagnosing4

Communication4

Motivation4

Steps to Design a System of Financial Control4

Defining the desired results4

Determination of the predictions that guided toward desired outcomes5

Determination of the standards of the predictors based on the results5

Evaluation and implementation of corrective action5

Advantages of the Areas Of Responsibility Accounting6

Correct Evaluation6

Comparison of budget6

Elimination of Traditional Presentation6

Administration of Objectives6

Controllable and Uncontrollable Items7

Evaluation of the different areas of responsibility7

Origin of the social accounting, and responsibility accounting8

Related theories8

Neoclassical Theory8

Utility Theory8

Institutional Theories10

Theory of participant10

Theory of standing10

Constructivist theory10

Recognition of "the social responsibility of the company"11

Concepts13

Objectives14

Characteristics14

Financial control in the modern organization15

Usual structure of the scorecard15

Success factors and financial control in the modern Organization16

Balanced Scorecard (or scorecard)16

Main Branches of Social Accounting21

The Environmental Accounting21

Ethical information23

Conclusions24

Responsibility Accounting

Introduction

Accounting as science of business information throughout its history has always sought to meet the requirements of their internal and external users, processing the horn core resources: raw materials, machines, or money capital and human resources, anyway note that the company is an economic unit of a subsystem of society that it is also required to manage these resources with social responsibility toward the completion of the aspirations and demands of the community. As, it is now imperative to ask how CPAs: What responsibility does companies about the social impacts arising from their activities? Do you perform actions that mitigate or avoid these adverse effects?

That is, we must take into account social responsibility as an element that must be shared by all levels of the enterprise to the extent that are concerned with each including the work is important to note that it is up to professionals accounting as one of the leading developers, and managers of enterprise information systems, we are required to meet these conflicting objectives and functions derived from the expansion of social awareness in order to disclose how the company is acting or economic entity in relation to the socioeconomic and natural. Under the current social science sensitivity accountant must undergo transformation as a result of new information requirements that come from both outside and internally due to the expansion of the social responsibilities that companies have entities today (Walker, 2004). Thus, the goal of accountability to owners and investors has been widened by the requirements of transparency and control everything that affects social welfare. These modern requirements associated with the growing awareness by the level and quality of life requires us to additions to our traditional information presentation of a greater volume of data such as social, ethical, environmental or ecological, which is known as Social Accounting. 

Areas of responsibility accounting

Responsibility accounting is one that classifies accounting information and statistics on the activities of a company under the authority and responsibility of managers or those who are responsible for them. It is a technique used to control the revenues, costs and expenses, taking into consideration the responsibilities assigned to each officer or supervisor of the area or department. Accounting has a threefold purpose: to help plan, make decisions and exercise supervisory ...