Question: 10-1: Explain why a budget-based compensation scheme may encourage a manager to shift income from the current period to a future period if expected performance

10-1: Explain why a budget-based compensation scheme may encourage a manager to shift income from the current period to a future period if expected performance is quite high (e.g., greater than 120 percent of budgeted performance). How could the income shifting be accomplished?

10-2: Write a paragraph that explains why a budget-based compensation scheme may lead managers to create budget slack.

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