Controllability principle- Principle that it's appropriate to to an area of only those that are significantly by manager of that responsibility centre

Responsibility accounting- Creation of centres & of costs & revenues so that from budget can be attributed to who is accountable for responsibility centre

Responsibility centre- of firm where an manager is held for unit's

Cost centre- centres whose are normally accountable for only those that are under their , also known as centres

Revenue centre- centres where are mainly accountable for outputs in form of generating

Profit centre- centres where are accountable for both &

Investment centre- centres whose are responsible for both & & also have responsibility & authority to make decisions

One element of management accounting control systems is processes such as & . These processes are used for establishing performance for performance

Another element of management accounting control systems is which involves creation of

Engineered targets- Used when there are clearly & stable relationships such that required can be estimated from

Targets derived from historical data- results & an increase for expected may form basis for setting or an factor may be incorporated into

Negotiated targets- Set based on between &

With budget-constrained style, data are used in manner in

Profit-conscious style uses data in more manner, with emphasis for on unit's contribution to

With non-accounting style, data plays relatively part in

Responsibility accounting involves: distinguishing between items managers & those items they , holding managers only for those items they can , setting performance targets & determining how those targets should be & determining how much managers should have in setting of

Budget-constrained style has adverse & effects on , especially where there are high levels of or

Managers pay attention to costs with & style

Difficulty with controllability principle is that do not fit neatly into either & categories. They are partially . When outcomes are affected by occurrences outside manager's control, competent can take to reduce their effects

Responsibility accounting can lead to behaviour in situations of high & high

To deal with uncontrollable factors before measurement period has started effect from report & effect in report

To deal with uncontrollable factors after measurement period has ended do , standards, evaluations & evaluations