Question

How can responsibility accounting and flexible budgets improve morale?

How can responsibility accounting and flexible budgets improve morale?

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Answer #1

under responsibility accounting managers may punished only for not meeting their responsibility towards the business.they are responsible for their acts only.so under responsiblity accounting the morale can be increased by holding managers are respnsible for activitis where they have control.

flexible budgets are helpul to identify the deviation of measures from budgets. and give better interpretations.if there is change in actual results from budgeted plan,they can be correctly identifiable and checks whether the deviations are good or bad for the firm.

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