You are the managing director of Combine Ltd, a company engaged in the manufacture and sale of
Question:
You are the managing director of Combine Ltd, a company engaged in the manufacture and sale of refrigerators and freezers. The board of directors has agreed to reorganise the company into two divisions – the domestic refrigerator division and the industrial freezer division. At the next board meeting the measures to be used to monitor management performance are to be discussed.
Prepare a five-minute presentation to your fellow directors which explains:
• The key factors to be considered in the design of financial performance measures for the divisional managers; and
• The use of non-accounting measures for appraising short-term divisional management performance.
Suggest three examples of non-accounting measures which could be used to monitor sales performance in the company.
Step by Step Answer:
Financial And Management Accounting An Introduction
ISBN: 9781292244419
8th Edition
Authors: Pauline Weetman