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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.
Resources, events, agents (REA) is a model of how an accounting system can be re-engineered for the computer age. REA was originally proposed in 1982 by William E. McCarthy as a generalized accounting model, [ 1 ] and contained the concepts of resources, events and agents (McCarthy 1982).
while financial accountancy information is computed by reference to general financial accounting standards, management accounting information is computed by reference to the needs of managers, often using management information systems. Focus: Financial accounting focuses on the company as a whole.
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.
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]
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]
Records management, also known as records and information management, is an organizational function devoted to the management of information in an organization throughout its life cycle, from the time of creation or receipt to its eventual disposition.
Resource Consumption Accounting was also recognized in a Sustainability Framework Report issued by the International Federation of Accountants (IFAC), for having the capability of helping organizations "improve their understanding of environmental (and social) costs through their costing systems and models". [6]