The higher and more accurate the budgeted profit forecasts of division managers,the higher their incentive bonuses.

Question

Quizplus · Accepted Answer

This statement suggests that division managers are incentivized based on their ability to accurately forecast profits. Therefore, the higher and more accurate their budgeted profit forecasts, the higher their incentive bonuses will be, creating a direct correlation between performance and reward.

The Higher and More Accurate the Budgeted Profit Forecasts of Division