focused around identification of responsibility centers. The responsibility centers represent the sphere of authority or decision point in an organization, Thus the responsibility of each individual should be defined andeach one should know what responsibilities are assigned to him.Thank you for your post. You have brought forward many good points. You have touched on the notion of responsibility centers and how this can defer in scope depending on the size of the organization.
According to literature, responsibility accounting is the main tool to establish accountability in organizations (Holtzman, 2013). While I believe this is important, I think it is more important to note that it also states that in also guarantees that subordinates will receive the authority to perform tasks and are held accountable for their performance (Holtzman, 2013). While success is always a derived from accountability, it is also imperative that subordinates are empowered to make decisions that may or may not result in success. I believe that one of the quickest ways to prevent organizational growth isby restricting subordinates and by micromanaging or creating bottlenecks by not empowering everyone.Cherie- Thank you for your reply, nice breakdown."Tax-Compliant Transfer Pricing and Responsibility Accounting"Robert - Thank you for your response and your article review on transfer pricing and responsibility accounting. Taxes are an important consider with transfer pricing, there can be some mis allocation of