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question 1 Kayu Malaysia Berhad has a subsidiary firm called Syarikat Kenanga Sendirian Berhad (KSB) (KMB). The return on investment (ROI) is used by KSB
question 1
Kayu Malaysia Berhad has a subsidiary firm called Syarikat Kenanga Sendirian Berhad (KSB) (KMB). The return on investment (ROI) is used by KSB as a performance indicator. An investment was defined by this corporation as the average of the opening and closing asset balances. Aside from that, the management pays bonuses based on their ROI success. All investments are anticipated to generate a minimum annual return of 20%. KSB had an investment opportunity in 2016 with an expected return of 18 percent. The KSB management was opposed to the investment choice because they feared it would reduce the division's ROI. The KSB division earnings is expected to be RM 2,640 million at the end of 2016, with assets predicted to be RM 18,000,00, which is a 1/3 decline from the 2015 year end balance. Required: a) For both divisions of the KSB, calculate the return on investment (ROI) and residual income (RI) for 2016.Kayu Malaysia Berhad has a subsidiary firm called Syarikat Kenanga Sendirian Berhad (KSB) (KMB). The return on investment (ROI) is used by KSB as a performance indicator. An investment was defined by this corporation as the average of the opening and closing asset balances. Aside from that, the management pays bonuses based on their ROI success. All investments are anticipated to generate a minimum annual return of 20%. KSB had an investment opportunity in 2016 with an expected return of 18 percent. The KSB management was opposed to the investment choice because they feared it would reduce the division's ROI. The KSB division earnings is expected to be RM 2,640 million at the end of 2016, with assets predicted to be RM 18,000,00, which is a 1/3 decline from the 2015 year end balance. Required: b) Describe the options for accepting or rejecting the investment opportunity. If residual income (RI) was employed as a performance indicator. The beginnings of Evolution management can be traced back to when man first began to live in groups. Strong men divided the people into groups based on their intelligence, physical, and mental qualities, according to history. The organisation of public life in ancient Greece, the organisation ofthe Roman Catholic Church, and the organisation of armed forces all show evidence of the employment of well-known management principles. Thus, management has been practised in some form or another in numerous regions ofthe world since the birth of civilisation. However, with the start of the Industrial Revolution, the situation changed dramatically. Industry's structure has become highly complicated. The development of a formal theory of management became critical at this point. The foundations of current management theory and practise were laid against this backdrop by the founders of modern management philosophy. The International Federation of Accountants {IFAC) (1998) provides a framework outlining the evolution of management accounting practises in order to encourage a better understanding of the changes in management accounting practises. This paradigm illustrates how management accounting has progressed via four distinct stages. Required: Discuss each ofthese four stages of evolution in terms of the "role, main focus," and "tools created" at each stageStep by Step Solution
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