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1. First, budgets are prepared for each responsibility center.
2. But every responsibility center is the unit of special budget's organization and execution.
3. An investment center is any responsibility center within an organization that has control over cost and revenue and also over investment funds.
4. To effectively implement the financial control, every accountability unit should clearly know its responsibility bound, also known as the "responsibility center".
5. Cost Center: A cost center is any responsibility center that has control over the incurrence of cost.
6. A responsibility center is a part, segment, or subunit of an organization whose manager is accountable for specified activities.
7. The structure of enterprise budget responsibility center is corresponding with its organization structure, and organization structure's type decides budget responsibility network's layout.
8. Thirdly, each responsibility center has to understand its duty cleanly so as to enhance the in-the-process-cost control system.
9. A revenue center is any responsibility center that responsible for revenue and, typical , for marketing cost.
10. Responsibility accounting is an accounting system designed to collect relative data and to separately measure the performance of each individual at various levels (responsibility center) .
11. Responsibility Center: A responsibility center is any point within an organization where control over the incurrence of cost or the generating of revenues is found.
12. Finally, the thesis designs financial and nonfmancial measures of performance evaluation for every responsibility center.
13. Thus, a department may be viewed as an area of responsibility for a given manager, and sometimes is called a responsibility center.
14. Third, timely performance reports are prepared, comparing the actual revenue and expenses of each responsibility center with the budgeted amounts.
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15. By comparing plans (budgets) with actions (actual results) for each responsibility center.
16. Responsibility accounting is a system for evaluating the performance of each responsibility center and its manager.
17. More and more domestic hospitals proceed to introduce the responsibility center system for establishing a set of scientific evaluative system.
18. However, if we must determine the performance to each responsibility center, we should take proper means to measure and evaluate it.
19. Second, the accounting system separately measures the performance of each responsibility center.
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