The impact of Responsibility Accounting on Cost Efficiency. A Case of Reformed Church in Zimbabwe Period 2009-2014

Abstract

The study is set out to investigate the impact of responsibility accounting on cost efficiency at Reformed Church in Zimbabwe (R.C.Z) in Masvingo Province. The study was largely prompted by the fact that despite having been functional, the Organisation was still facing a lot of challenges characterised by abuse of resources such as misappropriation of funds, high labour turnover and low profitability as a result of high running costs. The study used Pragmatic approach and paradigm in its methodology. The target population for the study comprised of top, middle and lower-level management and a sample of 45 employees from the four departments in the province was used. Stratified random sampling (probability sampling) was used. It is observed that some departments were operating without a Responsibility accounting policy in place and also there was no communication of Responsibility accounting role to various employees. In addition it is observed that inadequate ‘training programmes of employees, failure to consider lower-level management in budgetary formation and Inter departmental conflicts are major challenges bedevilling effective implementation of responsibility accounting. The study concludes that responsibility accounting plays a critical role in enhancing cost efficiency within the organisation thus responsibility accounting has got a positive influence on cost efficiency. The study recommends that a uniform responsibility accounting policy be formulated across all departments’ effective supervision and control over each cost centre be implemented and adequate training programmes to employees be provided