WHEN RESPONSIBILITY CENTERS ARE TREATED AS PROFIT CENTERS

1. THE SEGMENT MANAGER USUALLY MAKES CAPITAL SPENDING DECISIONS

2. THE SEGMENT MANAGER IS RESPONSIBLE BOTH COSTS AND REVENUES, BUT NOT RETURN ON INVESTMENT.

3. THE CORPORATE OFFICE MAKES MOST OF THE OPERATING AND PRICING DECISIONS.

4. THE SEGMENT MANAGER HAS RESPONSIBILITY FOR PRICING AND PRODUCT SELECTION, BUT NOT FOR PURCHASING AND PROMOTION.