Comparing ROI and residual income Balanced scorecard perspectives Computations for the DuPont model Criticisms of ROI Calculate residual income Calculate EVA Variable vs. fixed compensation Components of ROI Learning Objectives 25-1‚ 25-6 25-2‚ 25-3 25-2‚ 25-4 25-5 25-3 25-3 25-2‚ 25-4 25-4 25-6 25-2 Exercises 25.1 25.2 25.3 25.4 25.5 Topic Accounting terminology Balanced scorecard activities Employee motivation ROI versus EVA measures Performance and ROI versus residual income Learning Objectives
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Introduction to Key Issues Dennis Shaughnessy is the senior vice-president for corporate development and Charles River Laboratories (CRL). He prepared a presentation to the company’s board of directors which request to invest up to $2 million in a Mexican joint venture (JV). They need to decide whether to do a joint venture between ALPES and CRL. Some other issues came out at the same time‚ Jim Foster‚ the CEO viewed the proposed joint venture as a potential distraction as his company continues
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Johnny Hayek Oakland University **ADD ABSTRACT** Introduction “I know how hard it is for you to put food on your family." The 43rd president of the United States of America said this‚ George W. Bush. Such a brilliant statement‚ and not just in the comical sense. Although the quote is a perfect example of his dyslexia he was able to get his point across‚ it is hard for Americans to put a sufficient amount of food on the table for their families‚ or on them‚ however you
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Uploaded By Qasim Mughal http://world-best-free.blogspot.com/ Chapter 12 Segment Reporting‚ Decentralization‚ and the Balanced Scorecard Solutions to Questions 12-1 In a decentralized organization‚ decision-making authority isn’t confined to a few top executives‚ but rather is spread throughout the organization with lower-level managers and other employees empowered to make decisions. 12-2 The benefits of decentralization include: (1) by delegating day-to-day problem solving to lower-level managers
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Case 8-29 1. a. Sales budget: April May June Quarter Budgeted sales in units 35‚000 45‚000 60‚000 140‚000 Selling price per unit × $8 × $8 × $8 × $8 Total sales $280‚000 $360‚000 $480‚000 $1‚120‚000 b. Schedule of expected cash collections: February sales $ 48‚000 $ 48‚000 March sales 112‚000 $ 56‚000 168‚000 April sales 70‚000 140‚000 $ 70‚000 280‚000 May sales 90‚000 180
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To: Abel Terrio Fomm: Yailin Veloso‚ Jackson company Accountant Date: June 20‚ 2013 Subject: Income Statement Inquiry Mr. Terrio I understand your concern and relate to your worries‚ but I can assure you that the statement I provided to you was correct. I can also see where you thought it should have been a gain of $75‚000 instead of a loss of $6‚000. But in the next paragraph I will provide you a more detailed explanation so that you can understand better mathematical understanding of how
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indicates that regardless of the business‚ understanding and documenting the affects of decisions are in terms of costs and profits. The amount of Main Line’s loss can never be determined with pinpoint accuracy‚ since they did not properly utilize statement of financial accounting standards (SFAS 1981) and Main Line would not have made the profit that they indicate they would have. Main Line’s maximum and minimum lost profit amounts should not be revised downward for both domestic distribution and
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Final Exam A partial listing of costs incurred at Peggs Corporation during September appears below: Direct materials $199‚000 Utilities‚ factory $11‚000 Administrative salaries $83‚000 Indirect labor $29‚000 Sales commissions $37‚000 Depreciation of production equipment $31‚000 Depreciation of administrative equipment $44‚000 Direct labor $81‚000 Advertising $154‚000 02-14-2011 1. award: 4 out of 4.00 points The total of the manufacturing overhead costs listed
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Midterm Exam #2As the current CEO of Coca-Cola‚ I will pursue the strategy of localization‚ and there are several reasons below. First of all‚ because each country has its own culinary culture‚ Coca-Cola needs to adapt to a variety of culinary culture to increase their sales. Unlike products like cell phones or laptops which can become the best products as long as they are most advanced and practical‚ there is no best beverage because it’s really hard to identify. It means that Coca-Cola should
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new product line that he wanted to implement and it being eliminated from the stores. In addition‚ numerous stores were also closing which diminished their revenues and chances in reaping the benefit of opening new stores to accommodate the middle-income consumers. From the publicly reported information‚ I would have become skeptical of the ability of Grant to continue as a viable concern when he implemented the new strategy of credit extension. The new strategy put W.T. Grant in a position to
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