An Incentive Model for Accurate Reporting Having Three Components (1)it

question 30

Multiple Choice

An incentive model for accurate reporting having three components (1) it relates rewards to positively forecasted sales, (2) it provides incentives to increase sales beyond the forecast,and (3) it penalizes when sales fall lower than forecasted,should be developed for the firm's

• A)chief executive officer
• B)chief financial officer
• C)budget director
• D)sales manager

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Definitions:

Inventory

The goods and materials held by a company for the ultimate goal of resale or manufacturing into final products.

Consolidated Retained Earnings

The portion of earnings generated by a company and its subsidiaries that is not distributed as dividends but reinvested in the business.

Statement of Financial Position

Another term for the balance sheet, detailing a company's assets, liabilities, and equity at a given point in time.

Share Capital

The funds that a company receives from selling its shares to investors; also known as equity capital.