A financial (functional)-based responsibility accounting system assigns responsibility to organizational units and expresses performance measures in financial terms. Essentially, firms choose the responsibility accounting system is compatible with the requirements and economics of their particular operating environment. Firms that operate in a stable environment with standardized products and processes and low competitive pressures will likely find the less complex, financial-based responsibility accounting systems to be quite adequate. For example, a firm that produces concrete pipes and blocks has products and production processes that are well defined and relatively stable. Functional skills are specialized to gain operating efficiencies. Interactions with suppliers and customers are mostly limited to arm’s-length transactions. Competition tends to be local or regional as opposed to national or international. A successful firm operating in this type of environment would tend to emphasize maintaining the status quo: preservation of market share, stable growth, and continuation of efficient production.