Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 23 - Performance Measurement, Compensation, and Multinational Considerations - Assignment Material - Questions - Page 899: 23-11

Answer

I disagree with the statement that managers should be rewarded solely based on their performance measures without receiving a salary. A base salary is essential for providing financial security, ensuring motivation, and mitigating excessive risk-taking. It forms a fundamental component of fair compensation and accounts for the multifaceted nature of a manager's role. A combination of base salaries and performance-based incentives is a more practical and balanced approach.

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