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Does the company have a reasonable performance measurement

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Question - According to production budget, production manager of a shoe manufacturer was supposed to make 100 pairs of shoes. But there was demand for more; so he made 120 pairs. All 120 were sold. Production manager's bonus was tied to meeting the production cost budget. Because the production manager production produced more, he couldn't meet the cost targets and lost his bonus.

Does the company have a reasonable performance measurement?

Reference no: EM131660903

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