Posted: December 17th, 2014

Applied Managerial Accounting

Applied Managerial Accounting

Order Description

The President of EEC has decided to adopt the balanced scorecard. The balanced scorecard translates an organization’s mission and strategy into operational objectives and performance measures for 4 different perspectives. You received an e-mail from him asking about tying compensation with performance measures. Discuss the following in your response:

Discuss unethical behavior that can result if the wrong performance measures are used to tie performance measures to compensation.
How can EEC avoid these behaviors?
How should EEC tie performance measures to compensation?
Who is responsible for establishing the performance measures?

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