=+2 Suppose that Energell competes against Vantage Industries in the solar panel business. Vantage is approximately the
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=+2 Suppose that Energell competes against Vantage Industries in the solar panel business. Vantage is approximately the same size as the Solar Division and operates in a business environment that is similar. The top management of Energell is considering evaluating Pat McCue on the basis of Solar’s ROI minus Vantage’s ROI. Pat McCue complains that this approach is unfair because the performance of another company, over which she has no control, is included in her performance evaluation measure.
Is Pat’s complaint valid? Why or why not?
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Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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