Assume the VP of Foods and VP of Beverages is responsible for making capital investment decisions. Do you believe these costs should be allocated to the VP level for determining incentive compensation pay (such as bonuses or stock awards)? (VP of Foods, VP of Beverages...the boss of the product-line managers...see TN3 for organization chart).

Teaching Note (TN) 3: Organizational Chart for Lipton President CEO VP Finance VP foods VP Beverages VP Marketing Support Other VPS Don Logan (Assoc. Dir. Finl. Anl.) l'roduct Linc Managers Product Line Managers Bob Sims (Mktg. Finl. Anl.) Teaching Note (TN) 3: Organizational Chart for Lipton President CEO VP Finance VP foods VP Beverages VP Marketing Support Other VPS Don Logan (Assoc. Dir. Finl. Anl.) l'roduct Linc Managers Product Line Managers Bob Sims (Mktg. Finl. Anl.)