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?
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