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Salespeople at a particular firm forecast what they expect to sell next period. Their supervisors then review the forecasts and made revisions. These forecasts are
Salespeople at a particular firm forecast what they expect to sell next period. Their supervisors then review the forecasts and made revisions. These forecasts are used to set production and purchasing plans. In addition, salespeople receive a fixed bonus of 20% of their salary if they exceed their forecasts. a. Discuss the incentives of the salespeople to forecast next period sales accurately and also the trade-off between using the budget for decision making versus using it as a control device
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