The Use of Responsibility Accounting in Textile Industry in Bangladesh

Abstract

Responsibility accounitng, also called activity accounting or profitability
accounting is the collection, summarization and reporting of financial information
about various decision centers (responsibility centers) throughout an organization.
This paper is an effort to examine the real world practice of responsibility
accounting system in listed textile companies of Bangladesh. It also focuses on the
overall satisfaction of responsibility accounting system and the significance of each
element (i.e. assigning responsibility, estabilishing performance measures,
evaluating performance, assigning rewards and responsibility center) of
responsibility accoutning sytem. To achieve these objectives all the listed textile
companies have been surveyed. Findings reveal that all elements are important for
overall satisfaction of resposibility accounting system and descriptive statistics
show that the satisfaction of responsibilty accounting system of all listed textile
companies sustains in satisfactory level.