PYR is a divisionally structured company which contracts out teams of skilled engineers. The bonus scheme for the engineers is determined by amount of controllable profit earned in the period. Controllable profit for the most recent period is calculated as below: The managing director has full autonomy over all costs listed above and can directly influence the sales prices and promotions in the period. There has been discussion regarding removing cost of staff training from the above list of deductions. What is the most commercially relevant reason for excluding staff training costs from controllable profit for bonus calculations? Solution 

A.Fairness to staff. 

B.Motivation of staff. 

C.Impact on long-term company success. 

D.Increasing bonus cash for all staff

Answer rating: 100% (QA)

The detailed answer for the above question is provided below C Impact on longterm company success Th... View the full answer