What are some of the major problems associated with accrual-based accounting performance measures?
There are two major problems with accrual-based accounting numbers. The first problem is that they can be easily manipulated by managers. For example, the timing of end of period transactions can be accelerated or delayed to affect performance measures. Secondly, accounting measures cannot capture all corporate goals. Accounting measures are particularly inappropriate to measure qualitative changes in the workforce, qualitative changes in products, and achievement of social and non-monetary objectives. Additionally, accounting measures reflect only a short-term perspective of operations rather than a long-range goal orientation.
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Indicate whether the statement is true or false
Which of the following will NOT result in a significant reduction in product costs?
a. reduce setup time. b. reduce capacity utilization. c. reduce variability of processes. d. reduce non-value-added activities.
Which company below was not used in the textbook to illustrate the concept of conflict?
a. Apple b. Kodak c. Starbucks d. Five Guys
If the forecasted demand for June, July, and August is 32, 38 and 42, respectively, what is MAPD?
The following data summarizes the historical demand for a product: Month Actual Demand March 20 April 25 May 40 June 35 July 30 August 45