Page 948 - Accounting Principles (A Business Perspective)

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Based on an analysis of these reports, the Men's Clothing Department manager probably would take immediate
action to see why supplies and overtime were significantly over budget this month. The store manager may ask the
department manager what the problems were and whether they are now under control. The vice president may ask

the same question of the store manager. The president may ask each vice president why the budget was exceeded
this month and what corrective action has been taken.

Exhibit 203: Organization chart-Macy's corporation

Responsibility centers
A segment is a fairly autonomous unit or division of a company defined according to function or product line.
Traditionally, owners have organized their companies along functional lines. The segments or departments
organized along functional lines perform a specified function such as marketing, finance, purchasing, production,

Accounting Principles: A Business Perspective 949 A Global Text