Explain how relying on return on investment for performance evaluation of investment center managers could lead to goal incongruence.
Answer to relevant QuestionsWhat are the primary limitations of financial measures of performance?Use the following terms to complete the sentences that follow; terms may be used once, more than once, or not at all:CongruenceIncreaseControllability principleInternal businessCustomerInvestmentDecentralizationLearning and ...Assume that your cousin Matilda Flores manages a local glass shop that was recently bought by a company that produces custom picture frames. As a result, Matilda will soon be providing glass to the Frame Division. She has ...Investment Turnover Krall Company recently had a computer malfunction and lost a portion of its accounting records.The company has reconstructed some of its financial performance measurements including components of the ...The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $25 per unit. Variable costs for the casing are $12 per unit and fixed ...
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