Internal accounting systems, including performance measures, affect behavior. It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded. When, if ever, should these systems be revised?
A)Extremely seldom: it is too costly
B)Rarely: people understand how to perform under the present system
C)Sometimes: whenever it can be shown that significant dysfunctional results exist
D)Often: whenever management consultants develop a 'new and improved' system or measure
E)Never

Question

Quizplus · Accepted Answer

Internal accounting systems should only be revised when significant dysfunctional results exist. This can occur when the current performance measures do not align with the goals and values of the organization, or when they incentivize employees to engage in unethical or counterproductive behavior. However, revisions should not be made too frequently or without careful consideration, as this can lead to confusion and decreased motivation among employees.

Internal Accounting Systems, Including Performance Measures, Affect Behavior