Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed


Relevant costs, performance evaluation, goal congruence



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19.18 Relevant costs, performance evaluation, goal congruence.
(30 min)


Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012 This exercise illustrates the dysfunctional behaviour that could be motivated by arbitrary allocations of corporate overhead to profit-conscious divisional managers.
1
Without the €800,000 in sales from the low-margin product line in the Tampere Division, the second quarter operating statements (in thousands) will be

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