1. Home
  2. TRID
  3. View Record
https://trb-annual-meeting.nationalacademies.org/registration

SPECIAL STUDIES--DEVELOPMENT AND USE OF RESPONSIBILITY REPORTING AND FUNCTIONAL ACCOUNTING AS RELATED TO MAINTENANCE OF WAY EXPENSES AND CAPITAL EXPENDITURES

IN 1907 THE INTERSTATE COMMERCE COMMISSION PRESCRIBED THE UNIFORM SYSTEM OF ACCOUNTS. AT THAT TIME IT WAS A NOTEWORTHY ADVANCE IN RAILROAD ACCOUNTING. WITH THE PASSING OF TIME THERE HAVE BEEN CHANGES OF THIS DOCUMENT. WHILE IT MEETS THE NEEDS OF THE ICC, IT NO LONGER PROVIDES FOR THE DETAIL, IN ACCOUNTING, THAT IS NECESSARY FOR RAILROAD MANAGEMENT TO MAKE THE INTELLIGENT DECISIONS THAT ARE REQUIRED WHEN OPERATING WITH A DWINDLING SUPPLY OF DOLLARS THAT MUST GO FOR THOSE PROJECTS THAT WILL RETURN THE MOST BENEFIT. OUT OF THIS NEED FOR MORE DETAILED INFORMATION THAN PROVIDED IN THE UNIFORM SYSTEM OF ACCOUNTS GREW THE RESPONSIBILITY ACCOUNTING SYSTEM. THIS SYSTEM PROVIDED MANAGEMENT WITH THE INFORMATION AS TO WHERE AND BY WHOM THE MONEY WAS SPENT. SOME RAILROADS CONSIDER THIS SUFFICIENT INFORMATION; OTHERS, HOWEVER, AFTER USING THIS SYSTEM DECIDED THIS WAS NOT ENOUGH, AND WANTED TO KNOW WHAT THE EXPENDITURES WERE BEING MADE FOR. THE RESPONSIBILITY ACCOUNTING WAS THEN EXPANDED AND HAS EVOLVED INTO WHAT IS COMMONLY REFERRED TO AS FUNCTIONAL ACCOUNTING. THIS SYSTEM PROVIDES THE INFORMATION AS TO WHO SPENT HOW MUCH, WHERE, WHEN AND FOR WHAT. THE SYSTEM IS USED FOR BUDGETING, BUDGET CONTROL, PRODUCTION EVALUATION, ETC., DEPENDING UPON THE DESIRES OF MANAGEMENT. OUTPUT IS INITIALLY MADE FOR EACH REPORTING UNIT SUCH AS A SECTION GANG. THIS DATA IS THEN COLLECTED FOR GANGS UNDER THE SUPERVISION OF A ROADMASTER, ETC., AND PYRAMIDS TO EACH ASCENDING LEVEL OF RESPONSIBILITY. THE FULL DETAIL REPORTED IS, OF COURSE, REDUCED AT THE UPPER LEVELS SINCE THE VOLUME WOULD MAKE IT TOO TIME-CONSUMING TO REVIEW; HOWEVER, IT IS STILL AVAILABLE. THIS REPORT DESCRIBES BOTH SYSTEMS--STARTING WITH RESPONSIBILITY ACCOUNTING AND PROGRESSING TO FUNCTIONAL ACCOUNTING.

  • Authors:
    • Ealy, R L
  • Publication Date: 1973-11

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00219194
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 16 1974 12:00AM