Question: There hasn't been a structured approach for determining the managers' bonuses in the past. Therefore, the CFO is debating between two bonus structures and has

There hasn't been a structured approach for determining the managers' bonuses in the past. Therefore, the CFO is debating between two bonus structures and has asked you to discuss and calculate the bonuses under each option and provide a recommendation on which bonus structure to use. Specifically: 1. The CFO would like you to assess what type of responsibility centre these two divisions are, and to identify a relevant financial measure to assess performance of the divisions based on that classification. He would like you to use the divisional performance (related to that measure) to determine the managers' bonuses. 2. The CFO would like you to draft a balanced scorecard that both divisions can use. He would like you to assess each division's performance based on that scorecard and determine the managers' bonuses based on the divisional performance

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