Question
HarwoodMedical Case Summary: The case describes a company whose manager is concerned that the operating profit measure included in the company's bonus plan was too
HarwoodMedical
Case Summary:
The case describes a company whose manager is concerned that the operating profit measure included in the company's bonus plan was too narrowly focused. He implemented a new bonus plan that reduced the weighting of importance placed on operating profit and that included more measures, including on-time deliveries, sales returns, patent applications, scrap and rework costs, and customer satisfaction.
Case Questions:
- What was the purpose of the change?
- Evaluate the new plan. Is there any evidence that it produced the desired effects? What changes to the new plan would you suggest, if any?
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Principles Of Accounting And Principles Of Financial Accounting
Authors: Belverd E Needles, Marian Powers, Susan V Crosson
12th Edition
1133962459, 9781133962458
