Which of the following statements is true?

Incentive compensation for employees, such as bonuses, should be tied to balanced scorecard performance measures only if managers are confident that the performance measures are easily manipulated by those being evaluated.

If the balanced scorecard is correctly constructed, the performance measures should be independent of each other so that bad performance on one measure will not result in bad performance on another performance measure.

(Ch 12-LO 4)

Question 3 options:

	Only statement II is true.
	Both statements are true.
	Neither statement is true.
	Only statement I is true.