Question: At Lockhart Inc divisional managers are evaluated on the basis
At Lockhart Inc., divisional managers are evaluated on the basis of a variety of net income measures. The controller informs the president that such measures could be misleading. What are the major concerns in defining the ‘‘income’’ measures? Are internal or external measures more susceptible to manipulation? Explain.
Relevant QuestionsWhy would a company want to include sustainability as a perspective in a balanced scorecard?Carrington Co. operates its two divisions as investment centers. Information about these divisions follows.a. What is the residual income of each division if the ‘‘charge’’ on invested assets is 13 percent? Which ...One of the fundamental performance measurements in an organization’s balanced scorecard learning and growth perspective is the number of patents obtained. The following information from the U. S. Patent & Trademark Office ...Management at Lantana Inc. has decided to begin using through-put as a divisional performance measure. The Carolina Division is a job shop that carefully crafts furniture to customer specifications. The following first ...Different sources indicate differing key elements of total quality management, but integrity, training, leadership, and communication are four items that seem to be essential. Discuss why you think that these four elements ...
Post your question