1. Management Control Jeopardy: An active-learning prototype Frank Selto Directions: 1.If you have never watched the TV game show, Jeopardy, take the time to watch an episode. 2.Assigned teams and knowledge bases can depend on the size of the class and the extent of the background research reading. For this prototype, I assigned sets of readings (which became categories of the game) to sub-groups of the class, who were free to read any or all of the other sets of readings, too. Because the class had only 16 students, each was a solo participant. Teams of two or three might work more smoothly for larger classes. 3.You can choose the first participant randomly, or, as a reward, I allowed the highest performer on the previous exam to choose the first category and answer. The game proceeded as closely as possible to the TV version. 4.I allowed students to keep their own scores, and I was careful to label their points as “basis” points that I converted to modest bonus points on the next exam.

2. Performance Measure Jeopardy Financial Measures Non-Financial Measures Transfer PricingIncentivesEFG 10 20 30 40 50

3. 1.Cost center 2.Discretionary cost center 3.Revenue center 4.Profit center 5.Investment center Financial Measures – 10 points

4. ?

5. “Managers focus only on the most significant variances” Financial Measures – 20 points

6. ?

7. “Income/Sales Revenue X Sales Revenue/ Invested Capital” Financial Measures – 30 points

8. ?

9. “Managers forego investments that exceed the firm’s cost of capital” Financial Measures – 40 points

10. ?

11. 1.Income after tax 2.Net operating assets 3.Weighted average cost of capital Financial Measures – 50 points

12. ?

13. Employee capabilities Process and product quality Customer satisfaction Market share Non-Financial Measures – 10 points

14. ?

15. “Non-financial performance that signals future financial performance” Non-Financial Measures – 20 points

16. ?

17. “Relationships among lead and lag indicators of performance” Non-Financial Measures – 30 points

18. ?

19. Logical Finality Causal Non-Financial Measures – 40 points

20. ?

21. 1.“A” is logically independent of “B” 2.“A” closely but always precedes “B” 3.Observation of “A” predicts the subsequent observation of “B” Non-Financial Measures – 50 points

22. ?

23. “The value attached to a transfer of goods or services between divisions of a single company” Transfer Pricing – 10 points

24. ?

25. Debit to Division A’s G&A expense Credit to Division B’s revenue Transfer Pricing – 20 points

26. ?

27. “Arm’s length market price” Transfer Pricing – 30 points

28. ?

29. 1.Comparable uncontrolled price* 2.Resale price 3.Cost-plus* 4.Comparable profits 5.Profit split* Transfer Pricing – 40 points * = 5-point bonus question

30. Transfer Pricing – 40 points ? *

31. Administrative or managerial services Germany or Switzerland Transfer Pricing – 50 points

32. ?

33. “An individual’s compensation is contingent on organizational outcomes” Incentives – 10 points

34. ?

35. “Quarterly earnings” and “Long-term growth; environmental responsibility” Incentives – 20 points

36. ?

37. 1.Pay is not a motivator 2.Rewards punish 3.Rewards rupture relationships 4.Rewards ignore reasons 5.Rewards discourage risk taking 6.Rewards undermine interest Incentives – 30 points

38. ?

39. “It is only by giving a special inducement or incentive that the employer can hope even approximately to get the initiative of his workmen” Incentives – 40 points *bonus = “Scientific Management”

40. Incentives – 40 points ?

41. 1.Absolute or relative? 2.Formula or subjective? 3.Financial or non-financial? 4.Narrow or broad responsibility? 5.Current or deferred rewards? 6.Salary, bonus or stock? Incentives – 50 points

42. ?

43. Insert Text for Answer Others – 10 points

44. Insert Text for Question Others – 10 points

45. Insert Text for Answer Others – 20 points What are organizational controls?

46. Insert Text for Question Others – 20 points

47. Insert Text for Answer Others – 30 points

48. Insert Text for Question Others – 30 points

49. Insert Text for Answer Others – 40 points

50. Insert Text for Question Others – 40 points

51. Insert Text for Answer Others – 50 points

52. Insert Text for Question Others – 50 points

53. Final Jeopardy – 50 Points “The learning organization”

54. Final Jeopardy – 50 Points