Focusing managerial attention on a single metric may result in undesirable employee behavior and adverse business consequences.

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Focusing managerial attention on a single metric may result in undesirable employee behavior and adverse business consequences. For each of the following scenarios, identify the undesirable results that could occur.

a. A shipping department is evaluated solely on total shipping costs incurred.

b. An airline is evaluated based on on-time departures.

c. A production line is evaluated based on the percentage of time machines are running.

d. A salesperson is evaluated based on the number of new accounts opened.

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Managerial Accounting

ISBN: 978-1118338445

2nd edition

Authors: Charles E. Davis, Elizabeth Davis

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Question Posted: Feb 21, 2014 03:43 AM

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Focusing managerial attention on a single metric may result in undesirable employee behavior and adverse business consequences.

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