Question: How should RI be used to evaluate and reward managers? Select one: a. For each division, RI should compared to prior periods. Division managers would

How should RI be used to evaluate and reward managers?

Select one:

a. For each division, RI should compared to prior periods. Division managers would be rewarded for significant increases in RI from one period to the next.

b. The bigger RI the better. Division managers would be rewarded based on the ratio of operating income to RI; the smaller the ratio, the greater the reward.

c. The bigger RI the better. Division managers would be rewarded based on the ratio of operating income to RI; the greater the ratio, the greater the reward.

d. For each division, RI should be compared to the corporate RI. Division managers that exceed corporate RI would be rewarded, and those who fall below corporate RI should be helped to improve.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!