The chapter says that a measurement system can affect a business in several ways. As an example, consider a worldwide company with headquarters in New York City and divisions in many different locations. The company has an annual budget, and every month every part of the company has to report and compare its actual operating results to the results in the budget. Discuss how this reporting system affects the actions of the division managers in any of the four ways listed in the chapter:

A. Does the reporting system shape how the division managers think about their responsibilities?

B. Does the reporting system make certain actions by the company headquarters more legitimate?

C. Does the reporting system likely affect the actions of the division managers?

D. Does the reporting system affect the ability of the headquarters to control the actions of the division managers?

Explain your answers.