Question: 1. If a manager is compensated based on performance vs. budget, would he be encouraged to report income earned in Yr. 1 only in Yr

1. If a manager is compensated based on performance vs. budget, would he be encouraged to report income earned in Yr. 1 only in Yr 2, if the performance in Yr. 2 is expected to be much higher (say) 120% of budget. What could he do to accomplish shifting the reporting period? (4 MARKS)

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