as inventory turnover. Use non financial measures to control the inventory levels. If it is an strategic issue you canconnect the bonus system.Que. 2 What this measure to is overall evaluation of Abrams management control system?Describe any strength or weakness that you identified but did not include in answering the previous question, What changes, if any, would you recommend to top management?ln general, Abrams company adopts the lowest cost. differentiation, market focus and strategies to accomplish the organization's goal Furthermore, in order to implement the strategies the firm establishes its own management control systems Evaluation of Abrams Management Control system The current measurement system of the company is ROE The Rol target is set based on budget profit divided by actual beginning of the year net assets. Actual Roi is calcuiating by actual profit divided by aetual beginning of the year net asset. The advantage of the Abrams Company RO system is it does not consider the investment added during the year, because the investments provide little effort to the year but more benefit to the future However theROf measurement system has some weakness such as defer asset replacement, short-termfocus at the expense of long-term The incentive compensation plan of Abrams company is bonus plan. and it calculate accurately based on an equation, and it seems equal for alt members, in additian some adjustments also ar made associate with the performance of the managers. The performance is measured by compare of actual profit and budget profit However, all the measurement is Prepared by: Milan Padar 63 MBA (Pharma) Page 2 3 ABRAMS COMAPANY associate with data, sometimes the performance wi be influence by variance elements such a economic environment, the demand level, material price, cost of labor, and governmentp so the measurement need to improve in some areas The dollar amount of corporate bonus was established b a fixed formula linked to company earning per share This incentive