National Differences in Management Accounting – the case of performance measurement and performance reporting

“Fast & Furious Inc.” is a manufacturer of sports equipment with corporate headquarters in Germany. It recently has established new sales and service subsidiaries in several countries, among them China, Canada, and India. Now an individual performance measurement and incentive system for the new country managers must be set up. In addition, a standard performance reporting system for sales subsidiaries is to be developed.

The responsible management accountant at the German headquarters wants to prepare a proposal that takes national differences into account. What national aspects must be considered when setting up the new system of measuring and incentivizing performance? Collect ideas about the reasons for such differences and their effect on the way the system is structured and implemented!