Regalia Fashions has an incentive compensation plan through which a division manager receives a bonus equal to 15% of the division’s net income. Division income in 2024 before the bonus and income tax was $250,000. The tax rate is 30%. Calculate the amount of the bonus. Prepare the adjusting entry to record the bonus compensation. Bonus arrangements take many forms. Suppose the bonus specifies that the bonus is 10% of the division’s income before tax, but after the bonus itself. Calculate the amount of the bonus.

Which of the following is not an advantage of a group incentive pay scheme O A. administration time is reduced O B. individual working arrangements may become more flexible OC. non-production hours for individuals can be included in the scheme D. bonuses are easy to allocate to individuals Reset Selection

Salespeople who earn more than a particular amount get incentives. Who gets a bonus and how much? Can Excel do this?

how do compensation plans, including bonus structures, drive behavior?   How can transfer pricing, for example, lead to outcomes that are not in the best interests of the organization?  What do you think about executive bonuses tied to stock prices in a public company?   What other issues can you see with compensation plans?

In compensation management, if an company is unable to raise your salary, and they are trying to make you stay but are unable to raise your pay, what are three things they can do to make you stay and not leave the worrk?

One of the advantages of hiring younger workers is that they: a) seldom seek job flexibility. b) have low expectations for their pay as they lack experience. c) often bring optimism and a proven ability to multitask to work. d) work with a high sense of loyalty to their companies.

The Carla Vista Burkett Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The actual operating results appeared as follows. Determine the missing amounts. (Round Return on Investment to 1 decimal place, e.g. 52.7%.) Service revenue Variable costs Contribution margin Controllable fixed costs Controllable margin Average operating assets Return on investment $ Planes 5,018,000 1,518,000 25,018,000 12% Taxis $459,000 $ 189,000 79,000 10% Limos 329,000 389,000…

Discuss why in many liability firms, the managers do not receive a fixed payment for their work, but rather they are paid according to the results (such as profits or sales).

What is the most likely consequence of unethical behaviours by management accountants? Satisfied suppliers Customers paying less for products Resource allocation from the budgeting process in organisations being done inequitably Employees experiencing higher job satisfaction

ABC Ltd has incorporated a bonus plan that rewards the board of directors (executive members) by providing a bonus of 3 per cent of reported profits. This is an Accounting-based incentive that has the advantage which the accounting results may be based on subunit or divisional performance."A well-informed labour market will motivate management to work to maximise the value of its firm. Underperformance might lead to dismissal and, if the labour market is efficient in disseminating data, a 'failed' manager might have difficulty attracting a position with comparable pay elsewhere." (Deegan, 2020) Q. Explain whether the board of directors could be motivated to try to inflate reported profits ( 600 words )