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Exercise 2.1 (LO4) You Get What You Measure! Consider three very similar companies. Company A...

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Accounting

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Exercise 2.1 (LO4) You Get What You Measure! Consider three very similar companies. Company A allocates manufacturing overhead to jobs using labor hours as the allocation base; Company B allocates manufacturing overhead to jobs using machine hours as the allocation base; and Company C allocates manufacturing overhead to jobs using material cost as the allocation base. Required Explain why, in spite of the fact that the companies are very similar, supervisors at Company A are very focused on controlling labor, whereas supervisors at Company B are very focused on controlling machine run time, and supervisors at Company C are very focused on controlling material costs. Use the concept of "You get what you measure!" in your

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