Question
1. To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and EVA, the performance of a
1. To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and EVA, the performance of a division's major investments is sommonly evaluated through: (which one)
post audits, sensitivity analysis, performance operating plans, horizontal analysis, segmented reporting
2. The typical balanced scorecard is best desribed as containing:
Financial performance measures, nonfinancial performance measures, neither financial nor nonfinancial performance measures, both, either financial or nonfinancial measure but not both
3. A company's sales margin:
- must, be definition be greater that the firm's net sales; - has basically the same meaning as therm "contribution margin"; - is computed by dividing sales revenue by income; is computed by dividing income by sales revenue; show the sales dollars generated from each dollar of income
4. Economic value added:
- is a dollar amouth rather than percentage; -uses a firm's weighted-average cost of capital; - uses total assets in its computation and ignores current liabilities; posseess characteristics of answers A and B above
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