Industrial Electronics, Inc.

This case has been selected to give you experience in using cost accounting as the basis of a compensation system. You will have to evaluate an existing system, a proposed system, and comment on the strengths and weakness of each. Using this information. you will be required to recommend what you think is the best system for Industrial Electronics. Identify the specific weaknesses of the old system Identify the specific strengths of the new system, and how they address known problems of the previous system State clearly what the bonus pool would be for each of the divisions Explain how the proposed changes would improve the decisions made by division managers Use the numbers in the case to support all of your claims

Sample Solution