Responsibility accounting is defined as involving identifying and reporting costs (and revenues, where relevant) on the basis of the manager who has the authority to make the day-to-day decisions about the items. In a large company with multiple levels of management, some managers will work under other managers. Should the performance of lower-level managers be the responsibility of their superiors? Should the successes and failures of one manager reflect on the ability of the manager above him or her? Are there certain times upper management should take responsibility (or credit), while at other times give responsibility (or credit) to lower managers?