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Why should responsibility for related transactions be divided among

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Why should responsibility for related transactions be
divided among different departments or individuals? Do
you agree the transactions should be divided? Why or why
not?
Solution
Responsibility for related transactions is divided among
different departments & individuals to assign respective
accountability for specific transactions. This is the basis of
responsibility accounting (RA).
Under RA, responsibilities are delegated to the \"owners\"
of transactions who assume the responsibility &
accountability of such transaction. The purpose of RA is to
decentralize responsibility, to designated Responsibility
Centers (RCs). Each RC is responsible for its own Return
& Profitability metrics like (Return on Investment, ROI).
While RA is advantageous in that division of transactions
make a large organization more manageable by creating
separate, smaller RCs which can take decentralized
decision-making process, this creates few problems for the
organization. First, the RCs tend to ignore the bigger
picture of keeping the organization\'s goal as their top

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Why should responsibility for related transactions be divided among different departments or individuals? Do you agree the transactions should be divided? Why or why not? Solution Responsibility for related transactions is divided among different departments & individuals to assign respective accountability for specific transactions. This is the basis of responsibility accounting (RA). Under RA, responsibilities are delegated to the \"owners\" of transactions who assume the responsibility & accountability of such transaction. The purpose of RA is to decentralize responsibility, to designated ...
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