Purpose The purpose of this note is to expose accounting students and others to recent findings in management control, specifically to the relationship between the informativeness of a performance measure and its usefulness in performance evaluation. Design/methodology/approach Numerical...

This study examines optimal task assignment and performance measurement under moral hazard in a two state setting where two agents are risk neutral and have limited liability. Both productive and incentive efficiency are affected by task assignment. The principal may assign to each agent either...