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Chapter 24: Q24-4RQ (page 1355)

What is goal congruence?

Short Answer

Expert verified

Answer

Goal congruence is the stage where the various departments of anorganization share a common goal.

Step by step solution

01

Meaning of Organization

Organization refers to the association of people united mutually to accomplish common goals stated by the management.An organization comprises various divisions such as production, administration, marketing, and many more.

02

Meaning of goal congruence

The term goal congruence refers to a situation where the multiple levels of an entity, such as lower, middle, and upper levels, perform their activities for the accomplishment of the same goal. Goal congruence leads to the accomplishment of thestrategy of the organization.

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Most popular questions from this chapter

One subunit of Racer Sports Company had the following financial results last month:

Subunit X Actual Results Flexible Budget Flexible Budget % Variance

Variance (F or U) (F or U)

Net Sales

Revenue \( 476,000 \) 451,000

Variable

Expenses 261,000 251,000

Contribution

Margin 215,000 200,000

Traceable

Fixed Expenses 40,000 26,000

Divisional

Segment Margin \( 175,000 \) 174,000

Requirements

1. Complete the performance evaluation report for this subunit (round to two decimal places).

2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit?

3. Which items should be investigated if part of management’s decision criteria is to investigate all variances equal to or exceeding \(8,000 andexceeding 10% (both criteria must be met)?

4. Should only unfavorable variances be investigated? Explain.

5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain.

6. Will management place equal weight on each of the variances exceeding \)8,000? Explain.

7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain.

8. List one key performance indicator for the three other balanced scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list.

Well-designed performance evaluation systems accomplish many goals. Describe the potential benefits performance evaluation systems offer.

How is the use of a balanced scorecard as a performance evaluation system helpful to companies?

List the advantages of decentralization.

Explain the difference between a controllable and a non-controllable cost.
See all solutions

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