Impact Of Responsibility Accounting On The Profitability Of Organizations In Nigeria (A Study Of Pz Nigeria Limited)

ABSTRACT

The study examines the impact of responsibility accounting on the profitability of organization in Nigeria with a case study of PZ Nigeria L. T.D. Responsibility accounting is a system under which managers are given decisions making authority and responsibility for each activity occurring within a specific area of the company. Policies established by management failed to reach expected targets. This may be due to weaknesses in the operations of the responsibility accounting system. The data were collected from PZ company limited ABA by the researcher. The ordinary least square (OLS) regression technique and relevant parameters were used to presents, analyze and test hypotheses. as deemed appropriate. Following the testing of the cost centers, profit center and investment center, impact on the company's total profit, the researcher was able to find out that a cost division as a responsibility center does not contribute efficiently to the company's financial performance. This could be as a result of the services that the center produces. The researcher concluded that base on the findings from this study; the quality of services that a center produces in their different sub-units will go a long way in determining a company's financial performance. Management will achieve its objectives by ensuring full employment of responsibility accounting. Finally, responsibility accounting is an effective tool for evaluating the financial performance of a company.