RockBottomGolf is an Internet retailer and the focus of this chapter’s opener. It sells discounted golf merchandise through departments such as clubs, bags, apparel, and accessories. The company plans to expand to include many other types of sporting goods.
Required
1. How can RockBottomGolf use departmental income statements to assist in understanding and controlling operations?
2. Are departmental income statements always the best measure of a department’s performance?
Explain.
3. Provide examples of nonfinancial performance indicators RockBottomGolf might use as part of a balanced scorecard system of performance evaluation.