Ans. Responsibility accounting refers to accounting and budgeting and financing each responsibility within a company. The objective of responsibility accounting is to assist in the company’s financial and managing decisions held by managers. Many responsibilities are delegated to the subordinates such as cost, profit, investment, etc. These decisions are helpful in denoting the profits of the year. Each head is only responsible for a particular section. The cost head will be responsible only for the production department and so on.Example: Each division or department within the organization receives a monthly report showing the budget and actual amount planned for the year and recent months.