Potential reasons why the snack$-$foods division president might want to take these end$-$of$-$year actions include:

$($a$)$ Management incentives.

$($b$)$ Promotion opportunity and job security.

Top management of Gourmet Foods likely will view those division managers that deliver high reported earnings growth rates as being the best prospects for promotion

$($c$)$ Management incentives. If top management of Gourmet Foods adopts a $7$ approach, divisions that report may attract a sizable increase in top management supervision$|$

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Janet Taylor is the new division controller of the snack-foods division of Gourmet Foods. Gourmet Foods has reported a minimum 15% growth in annual earnings for each of the past five years. The snack taken. Taylor makes some inquiries and is able to compile the following each year in this same period. During the current year, the economy went into a recession. The corporate controller estimates a 10% annual earnings growth rate for Gourmet Foods this year. One month before the December 31 fiscal year-end of the current year, Taylor estimates the snack-foods division will report an annual earnings growth of only 8%. Warren Ryan, the snack-foods division president, is not happy, but he notes that "the end-of-year actions" still need to list of end-of-year actions that were more or less accepted by the previous division controller: (Click the icon to view the end-of-year actions.) Requirements 1. Potential reasons why the snack-foods division president might want to take these end-of-year actions include: (a) Management incentives. (b) Promotion opportunity and job security. Top management of Gourmet Foods likely will view those division managers that deliver high reported earnings growth rates approach, divisions that report If top management of Gourmet Foods adopts a (c) Management incentives. supervision Gourmet Foods may have a division bonus scheme based on one-year reported division earnings. Efforts to front-end revenue into the current year or transfer costs into the next year as being the best prospects for promotion. can increase this bonus. may attract a sizable increase in top management Janet Taylor is the new division controller of the snack-foods division of Gourmet Foods. Gourmet Foods has reported a minimum 15% growth in annual earnings for each of the past five years. The snack taken. Taylor makes some inquiries and is able to compile the following each year in this same period. During the current year, the economy went into a recession. The corporate controller estimates a 10% annual earnings growth rate for Gourmet Foods this year. One month before the December 31 fiscal year-end of the current year, Taylor estimates the snack-foods division will report an annual earnings growth of only 8%. Warren Ryan, the snack-foods division president, is not happy, but he notes that "the end-of-year actions" still need to list of end-of-year actions that were more or less accepted by the previous division controller: (Click the icon to view the end-of-year actions.) Requirements 1. Potential reasons why the snack-foods division president might want to take these end-of-year actions include: (a) Management incentives. (b) Promotion opportunity and job security. Top management of Gourmet Foods likely will view those division managers that deliver high reported earnings growth rates approach, divisions that report If top management of Gourmet Foods adopts a (c) Management incentives. supervision Gourmet Foods may have a division bonus scheme based on one-year reported division earnings. Efforts to front-end revenue into the current year or transfer costs into the next year as being the best prospects for promotion. can increase this bonus. may attract a sizable increase in top management

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