Which of the following would not play a strategic role in management compensation?

Question

Quizplus · Accepted Answer

The effect of a change in financial reporting method would not play a strategic role in management compensation as it would be a technical accounting matter that does not directly relate to the performance and decision-making of managers. The other options, such as ethical issues, strategic conditions facing the firm, and the effect of risk aversion on managers' decision making, would play a strategic role in determining management compensation as they relate to the performance and behavior of managers.

Which of the Following Would Not Play a Strategic Role