RESPONSIBILITY ACCOUNTING IN MANAGEMENT REPORTING SYSTEMS: AN APPLICATION TO THE COST CENTER OF A CONSTRUCTION COMPANY

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Management reporting systems which are crucial element in the internal control structure of the business organizations help managers to handle the problems at the right time and this situation bears such consequences that asist the business organization to reach it sends. Responsibility accounting constitutes the great majority of the management reporting system in the business organizations. Many firms structure their responsibility reporting systems around the areas of responsibility within the organization. Responsibility management is a system that measures the programs of each responsibility centres, their budgets and activities with actual results. Responsibility reports that are compiled for the responsibility centres are generally intended for the measurement of the financial performance. Cost, profit, investment and income centres are the most common responsibility centres in the business organizations. Cost centres are the organizational units that hold the responsibility of performing cost management in the determined limits in the budgets.

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Management Reporting System , Responsibility Accounting , Cost Centers

Afyon Kocatepe University Journal Of Economics an‎d Administrative Sciences

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Afyon Kocatepe University Journal Of Economics an‎d Administrative Sciences