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User Your team is competing to land a contract to provide consulting services to the company you ve been assigned. As a team, you are
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Your team is competing to land a contract to provide consulting services to the company youve been assigned. As a team, you are to work together to research the company; then design and propose a performance evaluation system for the company. While conducting your research and developing your proposal, consider that management is likely interested in a performance evaluation system that provides indicators for retaining and improving profitability and thus, seeks to provide insight for the following types of questions:
How much return is earned on various recent investments weve made?
Which of our products andor services generate the greatest sales volume?
Which of our products andor services generate the greatest net operating income?
Should any portion of the companys operations be shut down?
The Chief Financial Officer CFO will use the proposal your team presents to help
determine the best way to implement responsibility accounting and overall performance evaluation.
Although it is not required, any additional information that would be relevant to the CFO
and executive level management CEO COO, CIO, etc. would be appreciated and your team will be rewarded for providing such information. Thus, it may be necessary to concisely explain how any additional information you provide is relevant to your proposal.
Based on your research of the companys operations and business model,
recommend at least two logical ways to segment the company for responsibility accounting.
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