Prior literature suggests that organizations desire more accurate cost systems in response to greater competition. Complex cost systems have the potential to be more accurate than simpler systems, but are still susceptible to material errors. Overreliance on cost information provided by a...

This paper empirically examines the interactive effect of competition intensity and competition type on the use of customer satisfaction measures in executives’ annual bonus contracts. Specifically, we predict a stronger association between competition intensity in an industry and the use of...