ABSTRACT

 This research is aimed at evaluating the impact of responsibility accounting on the financial performance of companies in Nigeria. Responsibility accounting involves different organizational sub-units like the cost, profit, and investment departments. These departments or sub-units provide information to top management about their performances. This system of accounting cannot work except the organization is decentralized. The research highlighted how decentralization can work effectively where responsibility accounting system is established and how responsibility reports can assist in evaluating performance of subordinates and the sub-units. Therefore, to achieve the aim of this research, the researcher collected data's of three (3) different responsibility centers of Warn Refining and Petrochemical Company Limited, Delta State and formulated hypotheses were tested using Pearson's correlation coefficient and simple regression analysis after which the findings, recommendations and conclusions were made. FINDINGS: After testing the hypotheses based on the data collected, it was observed that the company maintained effective internal control system and the concept of decentralization is in practice. Also the measurement of profit is complicated by the problem of transfer prices and a managers competency, can affect a company’s financial performance. However, the researcher recommends that unit managers should ensure that the quality and quantity of services they produce should influence the financial performance of the company. Finally, responsibility accounting is an effective tool for evaluating the financial performance of a company