RESPONSIBILITY ACCOUNTING AND ITS APPLICATION IN FINANCIAL CONTROL: A LITERATURE REVIEW

Authors: Anneke M. Kaunang, Roslina H.S.D. Limpeleh, Johana M. Ratag, Farida I.S. Wakidin, Harty U.H.L. Koagouw, Jeane Ch. Lasut, Nixon Sondakh

Abstract: This research aims to examine the concept of responsibility accounting and its application in organizational financial control through a literature review approach. Responsibility accounting is a management accounting system used to measure and evaluate the performance of organizational units based on the responsibilities assigned to each manager. This system assists management in identifying deviations between budgets and actual results so that corrective actions can be taken appropriately. This study employed qualitative methods, with data collection techniques through documentation studies of books, scientific journals, and relevant literature sources. The results of the study indicate that responsibility accounting plays a crucial role in improving the effectiveness of financial control, managerial accountability, and the efficient use of organizational resources. Furthermore, the successful implementation of this system is influenced by several factors, such as organizational structure, the quality of the accounting information system, and the competence of human resources. Therefore, the effective implementation of responsibility accounting can help organizations improve performance and achieve their stated goals.