What is one of the ways that accounting is used to direct and control the manager of a corporation? a. Threatening to tell shareholders a mangers income if a manager makes a ‘poor financial’ decision. b. Linking of a mangers performance to a bonus that depends on accounting profit. c. Making decisions based on the accounting information regardless of managerial input. d. Using income smoothing to assure a manager that they can invest in a low risk investment.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 5MC: Performance measures are only useful if _______. A. there are both controllable and uncontrollable...
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What is one of the ways that accounting is used to direct and control the manager of a corporation?

a.
Threatening to tell shareholders a mangers income if a manager makes a ‘poor financial’ decision.

b.
Linking of a mangers performance to a bonus that depends on accounting profit.

c.
Making decisions based on the accounting information regardless of managerial input.

d.
Using income smoothing to assure a manager that they can invest in a low risk investment.

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