ROLE OF RESPONSIBILITY ACCOUNTING IN FOSTERING GOAL CONGRUENCE RATIONALE: It is impossible for top managers to make all the necessary decisions about everything except in very small organizations. Somehow at some point he has to delegate some decisions to those who are at the lower levels and are more knowledgeable to the everyday detail of the company’s operation. By empowering lower level managers to make decisions‚ decision-making authority is spread throughout the organization rather
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How entrepreneurs can contribute to the economic development of a country? i) Entrepreneurs can promote capital formation in a country - Entrepreneurs need money to set up and run their firm. To do that‚ they will need to borrow or employ their own resources or money. This will cause money to be channelled to help the country’s economy as an economy will only thrive when there is money circulating in the economy of a country. ii) Entrepreneurs can create employment opportunities to the public
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Budget and Responsibility Accounting Budget Meaning Budget is a financial and/or quantitative statement‚ prepared and approved prior to a defined period of time‚ of the policy to be pursued during that period for the purpose of attaining a given objective. * CIMA Official Terminology It is a plan quantified in monetary terms‚ prepared and approved prior to a defined period of time‚ usually showing planned income to be generated and/or expenditure to be incurred during that period
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RESPONSIBILITY ACCOUNTING Management Accounting - Responsibility Accounting Planning & control are essential for achieving good results in any business. Firstly‚ a budget is prepared and‚ secondly‚ actual results are compared with budgeted ones. Any difference is made responsibility of the key individuals who were involved in (i) setting standards‚ (ii) given necessary resources and (iii) powers to use them. In order to streamline the process‚ the entire organization is broken into various
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Values Congruence Values are something everyone posses. However‚ the level of these values range greatly from person to person and even person to company. Thus‚ the idea of value congruence comes into play for any or person or organization. Value congruence is “how similar a person’s value hierarchy is to the value hierarchy of the organization‚ a co-worker‚ or another source of comparison” altogether (McShane & Glinow‚ 2010‚ p. 49). To take it one step farther‚ there is a theory on value congruence
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THE CONGRUENCE MODEL The Congruence Model A Roadmap for Understanding Organizational Performance The critical first step in designing and leading successful large-scale change is to fully understand the dynamics and performance of the enterprise. It’s simply impossible to prescribe the appropriate remedy without first diagnosing the nature and intensity of an organization’s problems. Yet‚ all too often‚ senior leaders– particularly those who have just recently assumed their positions or joined
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a moral person aligns behavior to actions. The Manager’s failure to acknowledge the contributions of the staff constitute an ethical violation because it’s not acting with integrity- a core principle in ethics. According to Navran‚ “ethical congruence is the alignment of an organization’s stated
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BENEFITS OF RESPONSIBILITY ACCOUNTING ANSWER 1 1) Better System of Control It enables the management to management to delegate authority to responsibility centres while remaining overall control with itself. 2) Decentralization of Decision Making It forces the management to consider the organisational structure to result in effective delegation of authority and placement of responsibility.So it will compel individual manager to take right decision. 3) Comparison of Performance It
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How I Can Contribute To America I can contribute to America by helping people in need. Some people in America are less fortunate than others and can’t afford gifts or food. In winter it is rough being a person in need because if they have kids they would want to give them a memorable Christmas. On Christmas morning I’d bring them Christmas presents and a Christmas dinner so they can feel included‚ the presents would be stuff like blankets‚ coats‚ hats‚ gloves‚ toys‚ and new clothes. There is a
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"What is responsibility accounting? Is it used at your current (or former) place of employment‚ and if not‚ would it work? Why‚ or why not?" According to allbusiness.com‚ responsibility accounting is defined as a “collection‚ summarization‚ and reporting of financial information about various decision centers (responsibility centers) throughout an organization” (allbusiness.com). The article also explains that responsibility accounting helps an organization trace costs‚ revenues and profits to
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