Responsibility Reporting to Management.

The article focuses on the author's view of meeting useful management oriented accounting techniques. Accounting, in all its facets, is undergoing a critical analysis such as it has never experienced before. Most of the differences of opinion in accounting can be classified into two broad categories, those dealing with financial accounting or reporting and those dealing with management reporting. One of today's most controversial management accounting techniques is that of direct costing. Direct costing has achieved its current popularity primarily because of the manner in which expenses are classified for reporting purposes, rather than because of the values, which are placed on inventories. Management requires that accounting reports be as effective as possible in helping them to evaluate and control their operations. Responsibility reporting (RR) is an accounting technique designed to help accomplish this objective. RR does not involve any change from present generally accepted accounting principles. It is merely a system of classifying and reporting accounting data so as to facilitate the use of such reports in controlling operations.