Questions from Management Accounting


Q: Identify why RPE would be used t the company level.

Identify why RPE would be used t the company level.

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Q: ‘Executives should only be compensated based upon the achievement of targets

‘Executives should only be compensated based upon the achievement of targets. They should not receive a fixed salary component’. Discuss.

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Q: Describe two disclosures required by the Corporations Act with respect to

Describe two disclosures required by the Corporations Act with respect to executive remuneration.

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Q: Should a remuneration plan include a cash bonus or share options?

Should a remuneration plan include a cash bonus or share options? Under which circumstances would either be appropriate?

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Q: What are the advantages and disadvantages of having an individual’s remuneration

What are the advantages and disadvantages of having an individual’s remuneration linked to performance outcomes?

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Q: What role does the ASX Corporate Governance Council’s Corporate government principles and

What role does the ASX Corporate Governance Council’s Corporate government principles and recommendations, and the Corporations Act have in executive remuneration?

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Q: Refer to Paisley Insurance in comprehensive example 1 in chapter 12.

Refer to Paisley Insurance in comprehensive example 1 in chapter 12. In this example, an ABC and non-ABC version of the costs of servicing each type of account customer — residential and commercial —...

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Q: Why would a company restrict when a senior executive can exercise their

Why would a company restrict when a senior executive can exercise their share options?

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Q: Explain why boards of directors will often employ independent remuneration consultants to

Explain why boards of directors will often employ independent remuneration consultants to assist in developing and assessing compensation plans.

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Q: Explain the difference between shares and share options.

Explain the difference between shares and share options.

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