You have been retained by Carly to help her analyze the following issues as she works with the firm partners.

1. Each practice group is responsible for its costs of service, but the allocation of administrative expenses is not clear. What factors need to be considered in how costs are assigned and used in profit analysis and performance evaluation? What additional information is needed for this analysis?

2. What should be done about the bankruptcy practice? Does Carly need to take a different approach in analyzing performance and profit for this practice group?

3. The overall management strategy at Williams & Jacobs, LLC, is based on competition for the bonus pool. Based on Arjun Singh’s frustration about non compensated work that benefits other practice groups, is this the best approach to incentivize the professionals at Williams & Jacobs, LLC?