Questions from Cost Accounting


Q: How does the time perspective of a performance-based plan affect

How does the time perspective of a performance-based plan affect the selection of performance measures?

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Q: Why should different missions for two subunits result in different performance reward

Why should different missions for two subunits result in different performance reward structures for the managers of those subunits? How does the mission of an organizational subunit affect the mix of...

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Q: How can feedback, both positive and negative, be used to

How can feedback, both positive and negative, be used to improve managerial performance? How is feedback used in a performance-based reward system?

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Q: Many pay structures involve compensation combining both cash and stock. Why

Many pay structures involve compensation combining both cash and stock. Why do firms want employees to be holders of the firm’s common stock? What additional performance measurement and reward issues...

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Q: What are some of the important equity issues in designing reward structures

What are some of the important equity issues in designing reward structures? Why is the achievement of equity in the reward structure important?

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Q: Why is performance measurement important to the success of businesses? Should

Why is performance measurement important to the success of businesses? Should performance measures be qualitative, quantitative, or both? Justify your answer. For performance measurements to be meanin...

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Q: What benefits can be gained by allowing a manager to participate in

What benefits can be gained by allowing a manager to participate in developing the performance measures that will be used to assess that manager’s performance?

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Q: On what basis should the performance of a responsibility center be measured

On what basis should the performance of a responsibility center be measured? What are the traditional financial performance measures for each type of responsibility center? Why can the same quantitati...

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Q: Michigan Mfg. makes electronic products. Because the employees of one

Michigan Mfg. makes electronic products. Because the employees of one of the company’s plants are on strike, the Chicago plant is operating at peak capacity. It makes two electronic...

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Q: How can cash flow be used as a performance measure? In

How can cash flow be used as a performance measure? In what ways is cash flow a relatively stronger or weaker performance measure than accrual measures such as segment income?

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