Ethan Coleman, the president and CEO of High-Tech Inc., recently stated: We are in the business of innovation! If we don't innovate and encourage creative thinking in our employees, we are doomed. Why should I encourage my staff to develop budgets and standards? This will limit their creativity. Budgets, performance measures and cost control are for traditional manufacturing organizations- Not for high-tech industries. Do you agree with what Ethan says? Do you think it is important to have a management control system in high-tech companies?

Ethan Coleman, the president and CEO of High-Tech Inc., recently stated: We are in the business of innovation! If we don't innovate and encourage creative thinking in our employees, we are doomed. Why should I encourage my staff to develop budgets and standards? This will limit their creativity. Budgets, performance measures and cost control are for traditional manufacturing organizations- Not for high-tech industries. Do you agree with what Ethan says? Do you think it is important to have a management control system in high-tech companies?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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