=+3 Managers who are paid a bonus that is a function of gross margin may be inspired

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=+3 Managers who are paid a bonus that is a function of gross margin may be inspired to produce product in excess of demand to maximise their own bonus. The chapter suggested metrics to discourage managers from producing products in excess of demand.

Do you think the following proposals will accomplish this objective? Show your work.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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