For the 24 months preceding the plan and the first 24 months after plan implementation. After pulling out seasonal effects these monthly series are presented in figures 2, 3 and 4. If the plan has no impact on these expenses then you would expect no dramatic change in the series around month 25. Figure 2 plots (wage expense in month t/sales in month t) figure 3 plots (cost of goods sold in month t/sales in month t) figure 4 plots annual turnover computed as (12 x cost of goods sold in month t/inventory at[1] beginning of month t) for example, if monthly cost of sales is $100 and the annual inventory turnover ratio is 4, it suggests a monthly turnover of 0.333 with the firm holding $300 in monthly inventory.

Suppose the goal of the firm is to now provide superior customer service by having the sales consultant identify and sell to the specific needs of the customer. What does this goal suggest about a change in managerial accounting and control systems?

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If by adopting this incentive plan and the management makes sales personnel to target specifi... View the full answer