Question 17
People have criticized accounting measurement and control systems for:
A. |
Encouraging businesses to focus on short-term results |
|
B. |
Discouraging innovation |
|
C. |
Stimulating manipulation of data |
|
D. |
All of the above |
Question 18
A car dealership decides to give a monthly prize to the sales person who makes the most sales during a month, in the hopes of making more money by making more sales. One salesman reacts by getting another salesman to give him credit for cars sold by the other man, in order to come in first in the contest. This behavior can best be characterized as:
A.Acting to modify the measurement system before it goes into effect.
B.Doing what is desired in response to being measured
C.Doing what looks good on the measurement system, even though it was not what was actually desired
D.Lying
Q18 Correct Option is C:
his behavior can best be characterized as "Doing what looks good on the measurement system, even though it was not what was actually desired"
Q17.Correct Option is D
As becuase the business is seen to be focus on the long term point of view which encorages innovation withoout any data manipulation .So the above statement of criticism is valid from a people point of view.
Question 17 People have criticized accounting measurement and control systems for: A. Encouraging businesses to focus...
1. A car dealership decides to rank its sales people based on the number of cars that they sell during a month, in the hopes of making more money by making more sales. One salesman reacts by offering very generous deals to customers, in order to make sales, even though the dealership will not make any profits at these prices. This behavior can best be characterized as: A. Acting to modify the measurement system before it goes into effect. B....
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