18.15 Central management of Adler, Inc., evaluated divisional performance using residual income (RI) measures. The division managers
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18.15 Central management of Adler, Inc., evaluated divisional performance using residual income (RI) measures. The division managers were ranked according to the RI in each division. All division managers with residual income in the upper half of the ranking received a bonus. The bonus amount was in proportion to the RI amount. No bonus was paid to managers in the lower half of the ranking. What biases might arise in this system?
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Related Book For 
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto
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