New Market Builders Supply is a six-store chain of retail stores selling home renovation materials and supplies
Question:
Recently, the owner, Angela Kim, who has been reading all the latest management texts, has instituted a new bonus plan. All managers are to be paid bonuses based on the success of their department. For example, the bonus for George Tatulis, the sales manager, is based on how much he can increase sales. The bonus for Sonia Petrov, the credit manager, is based on reducing the bad debt expense.
Required
Describe the conflict that the bonus plan has created for the sales manager and the credit manager. How might the conflict be resolved?
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Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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