UESTION 33Consider the following five situations: (I) Relative performance evaluation is used for evaluating store managers. (II) Insurabce policy holders pay deductibles before being covered by the insurance (III) The warehouse manager is not held responsible for damages and stolen goods during a riot. (IV) Individual stores are allocated (charged) for the cost of advertising done by the headquarters. (V) In performance evaluation, the actual outcome is compared witht the flexible budget, not the original budget. Which of the above would be examples that go againt the controllability principle (concept)? A.I, II, and III B.I, II, and IV C.I and III D.II and IV E.III and V

The controllability principle (concept) stipulates that the evaluation of manager should be based on…

Answered: UESTION 33 Consider the following five…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 48P: (Appendix 11A) Balanced Scorecard The following list gives a number of measures associated with the...

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UESTION 33

Consider the following five situations:

(I) Relative performance evaluation is used for evaluating store managers.

(II) Insurabce policy holders pay deductibles before being covered by the insurance

(III) The warehouse manager is not held responsible for damages and stolen goods during a riot.

(IV) Individual stores are allocated (charged) for the cost of advertising done by the headquarters.

(V) In performance evaluation, the actual outcome is compared witht the flexible budget, not the original budget.

Which of the above would be examples that go againt the controllability principle (concept)?

A.

I, II, and III

B.

I, II, and IV

C.

I and III

D.

II and IV

E.

III and V

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