What role does the budgeting activity play in managerial compensation and performance evaluation?
Once set, the budget is not only a plan for the organization, but it becomes a standard against which actual performance may be compared. Recognizing the budget as a performance standard, organizations may base employee compensation (to some extent) on how well actual performance compares to the budgeted performance. Such a compensatory arrangement frequently involves a bonus plan that permits bonuses to go up as performance relative to the budget goes up.
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The best indicator for assessing a firm's long-term solvency risk is its ability to generate what over a period of years?
a. Sales b. Earnings c. Positive cash flows d. Income from continuing operations
Unit costs for each job are computed by dividing
a. estimated total costs by planned units to be produced. b. actual costs by actual units sold. c. cost of direct materials, direct labor, and overhead by number of units produced. d. estimated total costs by actual units produced.
Apollo Couriers, a company providing international express mail services, has a proactive customer communications team
The primary job of this team is to identify situations that led to customer dissatisfaction, and then provide quick remedies to fix the problems. To a great extent, this has helped Apollo in winning customer loyalty. In this instance, Apollo has benefitted from ________. A) product differentiation B) good service recovery C) multibranding D) place marketing E) co-branding
An evaluation of a retailer's overall strategy is a(n) _____ audit
a. vertical b. horizontal c. disguised d. undisguised