Performance Evaluation and Compensation
Q1 What is agency theory?
• Q2 How are decision–making responsibility and authority related to incentives and performance evaluation?
• Q3 How are responsibility centers used to measure, monitor, and motivate performance?
• Q4 How do return on investment, residual income, and economic value added affect managers’ incentives and decisions?
• Q5 How is compensation used to motivate performance?
• Q6 What prices are used for transferring goods and services within an organization?
• Q7 How do transfer prices affect managers’ incentives and decisions?
