Responsibility Accounting in Terms of Management Accounting

Managerial accounting is the most essential accounting field to provide contribution on company’s accomplishments. according to wal-mart which open the first supermarket in 1962 and has the biggest retail company around the world, developing a strategy via using managerial accounting techniques and methods is the key to achieve the success. because managerial accounting provide information related to decision making, activity planning, guidance and control processes to internal users assessing internal and external information, depends on the company’s activities , itis differentiated from financial accounting with its prudential approach. there are strong associations between responsibility centers, company managers and organizational structure. managerial accounting focused on responsibility centers of monetary and non-monetary resources, management and control of properties. therefore, responsibility reports are very important to evaluate the company’s success and these reports show the failures to managers in order to find the suitable precautions. in addition, responsibility centers increases the communication and provides competitive advantages with coordinating the departments.