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By using this approach, cost reports can be tailored for each recipient. Responsibility accounting involves the separate reporting of revenues and expenses for each responsibility center in a business. For example, the cost of rent can be assigned to the person who negotiates and signs the lease, while the cost of an employee’s salary what is bitcoin cfd trading is the responsibility of that person’s direct manager. This concept also applies to the cost of products, for each component part has a standard cost , which it is the responsibility of the purchasing manager to obtain at the correct price. Similarly, scrap costs incurred at a machine are the responsibility of the shift manager.
