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A responsibility center is an organizational unit headed by a manager, who is responsible for its activities and results. [1] In responsibility accounting, revenues and cost information are collected and reported on by responsibility centers.
A revenue center is one of the five divisions of a responsibility center – cost center, revenue center, profit center, contribution center and investment center. [2] Cost centers, like revenue centers, only monitor costs, thereby making them a counterpart to the revenue center. [3]
To reap the benefits a multiple shared service centers sets specific requirements to the resource allocation process in the internal organization of the firm. A critical issue is that the manager of a business unit and the manager of a shared service center will prepare a service level agreement (SLA), but the approval of the SLA is a reserved power of the executive board.
Accounting, also known as accountancy, is the process of recording and processing information about economic entities, such as businesses and corporations. [1] [2] Accounting measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and regulators. [3]
The following outline is provided as an overview of and topical guide to accounting: . Accounting – measurement, statement or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and public agencies.
A cost centre is a department within a business to which costs can be allocated. The term includes departments which do not produce directly but they incur costs to the business, [1] when the manager and employees of the cost centre are not accountable for the profitability and investment decisions of the business but they are responsible for some of its costs.
Improve management accounting knowledge and practice by clarifying and embracing sound principles that will enhance enterprise decision making and the public welfare through optimum resource usage. Advance the knowledge and practice of Resource Consumption Accounting (RCA) through: A community of active, high quality practitioners and academics.
It is an extension of standard accounting principles. Measuring the value of the human resources can assist organisations in accurately documenting their assets. In other words, human resource accounting is a process of measuring the cost incurred by the organisation to recruit, select, train, and manage human assets.