The Role of Responsibility Accounting as a Management Control Tool in Enhancing Good Corporate Governance

Abstract

This study examines the role of responsibility accounting as a management control tool in enhancing Good Corporate Governance (GCG). Responsibility accounting enables organizations to assign accountability to specific managers or units, thereby improving performance evaluation, cost control, and decision-making processes. The study aims to analyze how the implementation of responsibility accounting contributes to strengthening transparency, accountability, and overall governance practices within organizations. A qualitative approach is employed through a comprehensive literature review of relevant academic sources. The findings indicate that responsibility accounting plays a significant role in improving managerial performance, ensuring efficient resource allocation, and supporting internal control systems. Furthermore, it enhances transparency and accountability by clearly defining responsibilities and performance targets. However, effective implementation requires a well-structured organizational system, competent human resources, and alignment with governance principles. The study concludes that responsibility accounting is a strategic instrument that supports the realization of Good Corporate Governance when implemented consistently and supported by strong organizational commitment.