You will be assisting in the investigation of certain
variances. Using the information provided, formulate some
likely explanations for the observed variances. b.
Comment on the advantages and disadvantages of the
incentive compensation plan as it applies to department
heads. What is the appropriate role of the budget in
performance evaluation? What modifications to the
incentive plan would you recommend? Why? 3. (Optional)
Suppose that Berkshire Toy Company adopts a balanced
scorecard (BSC) to measure its performance. What
performance dimensions are typically included in a BSC?
What specific performance measures (indicators) might be
included in the scorecard?
ANSWER
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