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We have talked about Return on investment (ROI) and Residual Income calculations being used to incentivize managers. There are advantages and disadvantages to both. Sales persons are often paid commissions on their sales. These are all examples of employee compensation beyond basic salaries or wages. Part of the motivation in using them is the desire to remove as much subjectivity (bias or prejudice) from the pay structure as possible and to promote good performance. Research has shown that wage increases or salary increases affect motivation only for a very short time.
In light of all this, what factors do you think should go into a performance-based compensation plan? If you were a business owner, how would you design your compensation structure? Would you use ROI, Residual Income, Sales Commissions or some combination of these and other ideas?
Bo Vonderweidt, the production manager for Sportway Corporation, had requested to have lunch with the company president. Vonderweidt wanted to put forward his suggestion to add a new product line
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On their separate 2011 income statements, Payton & Starker reported depreciation expense of $84,000 and $60,000 respectively. The amount of depreciation expense on the consolidated income statement for 2011 would have been
ship sells hangings for 30 a foot. their value chain for this product is three sequential activities of cut paste amp
What is the total of consolidated cost of goods sold and What is the total of consolidated revenues, What is the consolidated total for inventory at December 31, 2011?
During your examination of the evidence, you uncover a material weakness in interal control.
what is the product unit cost for job 14 which consists of 300 units and has total manufacturing costs of direct
On August 1, Stuart Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year:
Hartzler Enterprises issued 8%, 8-year, $2,000,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2011, and are issued on that date. The discount rate of interest for such bonds on April 1, 20..
chip and dale agree to form a partnership. chip is to contribute 50000 in assets and devote 12 time to the partnership.
the blending department of luongo company has the following cost and production data for the month of april. costsnbsp
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