Chapter 13, Problem 1RQ

What is the managerial accountant’s primary objective in designing a responsibility-accounting system?

To determine

Explain the primary objective of the managerial accountant in designing a responsibility accounting system.

Explanation of Solution

Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing, classifying, and analyzing the financial reports, and communicating the relevant information to the managers of the company to achieve the objectives and goals of the organization.

Explain the primary objective of the managerial accountant in designing a responsibility accounting system as follows:

The primary objective of the managerial accountant in designing a responsibility accounting system is to provide the incentive for subunit managers of the organization in order to achieve the organization’s goals.