3 a ppl ying the contr ollability principle and measur ing divisional perf ormance in uk companies in view of these dev elopments, and the fact that most of the. The responsibility center in which the manage has responsibility and authority over revenues, costs and assets is: an investment center the responsibility center in which the manager does not have responsibility and authority over costs is.
The controllability principle in responsibility accounting created date: 20160809022648z.
To assess whether role stress effectively mediates the relationship between the application of the controllability principle and managerial performance, we first tested for a direct relationship between the application of the controllability principle and managerial performance (baron and kenny, 1986. Lability principle on which responsibility account- ing is founded the analysis leads to the formu- lation of propositions which indicate that controllability is not an unqualified ‘good’ and if responsibility accounting is to serve its intended purpose in furthering the firm’s goals it should not be constrained by controllability. W e emphasize o u r particular controllability rhetoric is designed to build intuition earlier au th o rs, such as f errara , were not as narrow in their conception of controllability o n the other h an d , w e use the form ality of the principal-agent paradigm to propose a precise notion o f controllability.
These two aspects are collectively referred as principle of controllability this principle dictates that managers should be held only responsible against such costs, revenues, profits or other basis of performance measurement which were in their control managers should not be questioned for anything that was beyond their control.
In this paper, we illustrate some subtleties related to responsibility accounting by studying two settings in which there are interactions among multiple control problems in the first setting, two agents are involved first in team production (eg, coming up with ideas) and then in related individual production (eg, implementing the ideas.
The controllability principle in responsibility accounting: another look in this paper, we illustrate some subtleties in responsibility accounting by studying settings in which there is an.