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QUESTION
Consider the importance of the management control system, compensation and the success measurements we covered in the course. Design a compensation schedule for the manufacturing division manager of a
Consider the importance of the management control system, compensation and the success measurements we covered in the course. Design a compensation schedule for the manufacturing division manager of a midsize manufacturing company. (The firm is decentralized.) Balance the needs of all of the stakeholders. Indicate any controls you have added such that your incentives will not lead to illegal or unethical behavior. Make sure you address the following:
- Individual Performance Measure (5 points)
- Plant/Companywide Performance Measures (5 points)
- Cost Allocation and Transfer Price Issues (5 points)
- Stakeholders (5 points)
- Budget Pressures (5 points)
- Controls/Balanced Score Card (5 points)
