Determinant Controllability of Responsibility Accounting in Profit Planning
The issue of stewardship and scarcity of resources have brought about the need to attach responsibility to activities. Systems designed expected to accumulate costs for the purpose of ascertaining product and period costs in order to plan profit have failed to identify responsibility managers who should control these costs. This study sought to review literature on the controllability principle in responsibility accounting concept as a determinant of profit planning. Arising from this study, controllability establishes and reports the cause and effect relationships between activities of specific managers and the performance of their activities. It is also observed that in addition to assigning costs to specific responsibility centres, two extreme levels of the application of the controllability principle exist. These are the low level and high level controllability accounting application systems. Nonetheless, there are some organizations that fall within the continuum of these application systems.
Key words: Controllability; Principal-Agent model; Profit planning; Responsibility accounting
Adrian, G., & Romana, R. P. (2009). Study Regarding the Organization of Management Accounting in the Context of Responsibility Centers (p. 967). Retrieved from http://steconomice.uoradea.ro/anale/volume/2009/v3-finances-banks-and-accountancy/164.pdf
Antle, R., & Demski, J. S. (1988). The Controllability Principle in Responsibility Accounting. The Accounting Review, 63(4), 700-718. Retrieved from http://www.cob.ohio-state.edu/~young_53/Antle_Demski.pdf
Arya, A., Glover, J., & Radhakrishnan, S. (1998). The Controllability Principle in Responsibility Accounting: Another Look. Retrieved from http://wenku.baidu.com/view/e3f4d669561252d380eb6e25.html
Beightler, C. S., & Street, R. L. (1967). Profit Planning in Non-Life Insurance Companies Through the Use of a Probability Model. The Journal of Risk and Insurance. Retrieved from http://www.jstor.org/stable/pdfplus/251323.pdf
Bevan, D., & Messner, M. (2008). Responsibility Accounting and Controllability: A Deconstructive Reading. Retrieved from http://www2.le.ac.uk/departments/management/documents/research/research-units/cppe/conference-pdfs/derrida/derrida_bevan.pdf
Brewer, G. N. (2006). Cost and Management Accounting (11th ed.). New York: McGraw-Hill Companies Inc.
Callen, J. L., & Livnat, J. (1989). Responsibility Accounting and Asymmetry of Information. Managerial and Decision Economics, 10(1), 81-84. Retrieved from http://www.jstorost.or/stable/2487184
De Vos, H., Isenberg, M., & Jones, R. (1967). Management Services: Financial Management and Control. Retrieved from http://content.ebscohost.com/pdf13_15/pdf/1967/JAJ/01Mar67/4582470.pdf?T=P&P=AN&K=4582470&S=R&D=bth&EbscoContent=dGJyMNXb4kSeprQ4yOvsOLCmr0qeprdSsqa4Sq%2BWxWXS&ContentCustomer=dGJyMOzprkmzr65MuePfgeyx44Dt6fIA
Dury, C., & EL-Shishini, H. (2005). Divisional Performance Measurement: An Examination of the Potential Explanatory Factors. Retrieved from http://www.accountingnet.ie/artman2/uploads/research_full_report_divisional_performance_2005_1_.pdf
Fowzia, R. (2011). Use of Responsibility Accounting and Measure the Satisfaction Levels of Service Organizations in Bangladesh. International Review of Business Research Papers, 7(5), 53-67. Retrieved from http://www.bizresearchpapers.com/4.%20Rehana-FINAL.pdf
Hay, L. E. (2002). Planning for Profits: How Some Executives Are Doing It. Retrieved from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=1ece447c-2ae4-402d-8c89-db0d6b0d8b70%40sessionmgr110&vid=10&hid=12
Hill, W. E. (1959). Planning for Profit: A Four Stage Method. Retrieved from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=1ece447c-2ae4-402d-8c89-db0d6b0d8b70%40sessionmgr110&vid=6&hid=119
Katzenbach, J. R. (1967). Can Companies Plan Their Profit? Retrieved from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=1ece447c-2ae4-402d-8c89-db0d6b0d8b70%40sessionmgr110&vid=8&hid=14
Larmande, F., & Ponssard, J. P. (2007). Responsibility Accounting with a Privately Informed Agent. Retrieved June 21, 2012 from http://hal.archivesouvertes.fr/docs/00/24/30/68/PDF/2007-10-01-1690.pdf
Lucey, T. (2009). Costing (7th ed.). London: BookPower.
Ludy, P. J. (2009). Profit Building: Cutting Costs Without Cutting People. Retrieved from http://www.scribd.com/doc/19200510/FREE-EXCERPT-Profit-Building
Millians, P. M. (2002). Profit Building: Cutting Costs Without Cutting People. Retrieved from http://www.bkconnection.com/static/Profit_Building_EXCERPT.pdf
Robbins, S., & Foster Jr, E. (1959). Profit-Planning and the Finance Function. Retrieved from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=1ece447c-2ae4-402d-8c89-db0d6b0d8b70%40sessionmgr110&vid=10&hid=12
Rust, R. T., & HUANG, M. (2012). Optimizing Service Productivity. Retrieved from http://www.marketingpower.com/aboutama/documents/jm_forthcoming/optimizing_service_productivity.pdf
Simons, R. (2007). Revisiting the Controllability Principle in the Twenty-First Century. Retrieved from http://www.hbs.edu/units/am/pdf/Rethinking%20the%20Controllability%20Principle.pdf
Wesch, G. A. (2001). Behavioral Implications on Profit Planning and Control. Retrieved from http://connection.ebscohost.com/c/articles/6043447/behavioral-implications-profit-planning-control
- There are currently no refbacks.
If you have already registered in Journal A and plan to submit article(s) to Journal B, please click the CATEGORIES, or JOURNALS A-Z on the right side of the "HOME".
We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: email@example.com; firstname.lastname@example.org; email@example.com
Copyright © Canadian Academy of Oriental and Occidental Culture
Address: 730, 77e AV, Laval, Quebec, H7V 4A8, Canada
Telephone: 1-514-558 6138