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Unformatted text preview: concept of activity-based costing (ABC) and cost drivers, including secondstage cost drivers. Many service and manufacturing organizations are turning to ABC as a way to both measure
costs more accurately and exert greater control over them. Thus, this chapter also bridges forward to the chapters
on responsibility accounting. The chapter then looks at the distinction between absorption costing and variable
costing, and discusses the advantages and disadvantages of each.
Chapter 6. Responsibility Accounting: An Overview
This chapter emphasizes the distinction between measuring and managing resources, a key underpinning of responsibility accounting. It begins with an analysis of the relationship between cost accounting and responsibility
accounting systems, and then moves into the realm of responsibility accounting. To design a good responsibility
accounting system, a manager must think about both the responsibility accounting structure and the management
control process. The chapter puts most of its emphasis on structure, discussing the different types of responsibility
centers that can exist in an organization, the basis for choosing one type over another, and the relationship between
the responsibility acc...
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- Spring '14