Explain how and why the use of ROI for performance evaluation can cause managers to make decisions that could be harmful to an organization in the long run.
Answer to relevant QuestionsExplain why the use of residual income for performance evaluation provides better incentives, in some ways, than ROI, but still causes managers to make some decisions that could be harmful to an organization in the long run.Explain why organizational form may vary if specific knowledge versus general knowledge is needed for decision making.Your brother recently bought a small business with several coffee carts located around the city. Two workers share responsibility for each cart. All beverages are prepared using identical recipes and ingredients, but the ...Nexa’s Division A produces a product that can be sold for $200 or transferred to Division B as a component for its product. Division B can buy the part from another suppler at $180. In the current period, Division B ...The ATCO Company purchased the Dexter Company three years ago. Prior to the acquisition, Dexter manufactured and sold plastic products to a wide variety of customers. Since becoming a division of ATCO, Dexter only ...
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