15. multiple tasks and delayed evaluation The manager of a facility that manufactures automobile components is evaluated on the basis of output (relative to an output budget)

and cost (relative to a cost budget). Product quality is also important, and it is well recognized short-run performance measures can be favorably influenced by degrading quality. In turn, quality is monitored by inspection, scrap, and rework statistics. Warranty claims that are filed by customers are also important, though they can arise up to four years after the component was manufactured. The firm tracks warranty claims by component, facility and manager at the time of manufacture. Thus, if the manager is promoted, the warranty statistics will continue to be compiled, thereby stretching out the evaluation period. Comment on this evaluation practice.
Financial reporting requires the firm provide an accrual to estimate the warranty expense and liability at the time of sale. Why does the firm not find this accrual sufficient for the evaluation exercise?

tracks warranty claims by component, facility and manager at the time of manufacture. Thus, if the manager is promoted, the warranty statistics will continue to be compiled, thereby stretching out the evaluation period. Comment on this evaluation practice.
Financial reporting requires the firm provide an accrual to estimate the warranty expense and liability at the time of sale. Why does the firm not find this accrual sufficient for the evaluation exercise?