TITLE

Discussion of "Accounting-based divisional performance measurement: Incentives for profit maximization"

AUTHOR(S)
FELTHAM, GERALD A.
PUB. DATE
March 1990
SOURCE
Contemporary Accounting Research;Spring1990 Part 2, Vol. 6 Issue 2, p922
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article presents a commentary on an article published in this same issue of the journal titled "Accounting-based divisional performance measurement: Incentives for profit maximization," by J.S. Jordan. The author focuses on the model presented--its shortcomings and the subsequent analysis--from an agency theory perspective. The author admits his approach differs from Jordan's, who rejected that perspective. The author considers production technology and cost models, decomposable versus nondecomposable environments, management preferences, performance measure criteria, and sequence of events and the equilibrium mechanism.
ACCESSION #
10929355

Tags: ACCOUNTING;  PERFORMANCE -- Management;  INDUSTRIAL productivity;  INCENTIVES in industry;  JORDAN, J. S.;  AGENCY theory;  PRODUCTION (Economic theory)

 

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