1. Why is goal congruence important to an organisation's success? how can a responsibility accounting system foster goal congruence?
2. Discuss the benefits and costs of decentralisation.
3. When developing financial performance reports in a decentralised organisation, a contribution margin format may be used. Explain the advantages of using this format for performance evaluation of units and managers.
4. Explain the significance of having no spare capacity in a supplying unit when transfer prices are set using the general transfer pricing rule.