ACCY302 - ADVANCED MANAGEMENT ACCOUNTING -TRIMESTER 1, 2021 Divisional managers (DMs) have a significant input to all capital expenditure decisions authority to spend up to $100,000 on capital items as long as total spending remains amount provided for small projects in the authorised annual budget. Larger project submitted by DMs to central management (CM) using group investment appraisal p All day-to-day operations are delegated to DMs, whose performance is monitored w of budgets and reports. The basis for appraising DM performance is currently under review and you approached as a consultant to advise the MakeMore Bread Group on this issue. divisions are treated as investment centres for DM performance appraisal, but disagreement as to whether return on capital employed or residual income is the better and confusion about how these should be defined, as it is the DMs performance (not the performance of the divisions themselves) that is to be measured. The group Cha recommended that DM performance appraisal should be "simple and focussed on t line" and she recommends "simply using divisional profit. You are supplied with details of a potential investment opportunity that could be und either divisional manager: $000 Net asset investment required 150 Annual sales 300 Annual profit 27 The cost of capital of the MakeMore Bread Group is 17% per annum