BU527 Lecture Notes - Lecture 11: Financial Statement
Document Summary
Problems identified: each unit created its own financial statement, but the problem was many of the statements were incomplete and had items that could not be identified. Recommendations: the financial measures should not effect innovation. The decentralized approach should influence innovation; so should inform the dean and top-level managers that they are empowered to promote innovation within the company and the teaching quality should not be effected. Individuals in the revenue centers should be trained and should be taught on how to effectively record costs at a fair value. Although, you want to attract students to take the respective courses it should be based of interest and not easiness". These courses should be verified by some standard in order to deem it approved: certain rules and procedures should be put in place to discourage end of period manipulation with donors.
