ESSAY. Write your answer in the space provided or on a separate sheet of paper. 22) Ralph Company has been very aggressive in developing various types of financial and nonfinancial measurement schemes to help with the evaluation of its manufacturing processes. It appears that some of the managers are suboptimizing in that their decision processes are geared solely for their department's benefit, sometimes to the detriment of the organization as a whole. Required: What changes in the evaluation system could the company implement to help minimize the suboptimization of the managers' decision-making process?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter1: Accounting As A Tool For Managers
Section: Chapter Questions
Problem 3MC: Which of the following is a primary aspect of the evaluating function within an organization?...
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ESSAY. Write your answer in the space provided or on a separate sheet of paper.
22) Ralph Company has been very aggressive in developing various types of financial and nonfinancial measurement
schemes to help with the evaluation of its manufacturing processes. It appears that some of the managers are
suboptimizing in that their decision processes are geared solely for their department's benefit, sometimes to the
detriment of the organization as a whole.
Required:
What changes in the evaluation system could the company implement to help minimize the suboptimization of the
managers' decision-making process?
Transcribed Image Text:ESSAY. Write your answer in the space provided or on a separate sheet of paper. 22) Ralph Company has been very aggressive in developing various types of financial and nonfinancial measurement schemes to help with the evaluation of its manufacturing processes. It appears that some of the managers are suboptimizing in that their decision processes are geared solely for their department's benefit, sometimes to the detriment of the organization as a whole. Required: What changes in the evaluation system could the company implement to help minimize the suboptimization of the managers' decision-making process?
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