What is the accounting method that assigns control of revenues, costs, and expenses to a specific manager called?

Responsibility accounting is designed to help organizations track financial performance at various levels of management, allowing for the assignment of control over revenues, costs, and expenses to specific managers. This method enables managers to be held accountable for their specific areas, facilitating better decision-making and performance evaluation based on their responsibility centers, which can include cost centers, profit centers, and investment centers.

This accountability system aligns the management's efforts with the organization's financial objectives and encourages improved efficiency and performance, as managers can see the direct impact of their decisions on the financial outcomes of their departments or divisions. The structure of responsibility accounting is essential for preparing reports that reveal areas where a manager is performing well or where improvements are needed, thus actively engaging them in the financial health of their segment of the business.