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Essay Details:
Essay text:
According the case information, the plant manager does not control the green beans purchase, production schedule or the production mix, nor do they have control over sales or marketing. Regardless they are evaluated on the basis of the performance of their plants. Aloha Products has a cost center structure, but the control system is attempting to measure the roasting plants on a profit center system. Having a profit center measurement approach for infrastructure that operates in a cost center approach, will not provide reasonable measurements for the management control system.
The plant manager's concern regarding the evaluation system is valid...
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Common topics in this essay:
- Aloha Product
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