1. Discuss why flexible budgets are necessary for effective performance evaluation.
2. Describe a situation in which an increase in sales revenues should not be credited to the marketing manager.
3. How would you interpret the overall performance of your marketing manager when the firm had an unfavorable sales volume variance but a favorable sales price variance?
4. Calculate the ROI (Margin and Turnover) for the most recent year in your subject company. Discuss three specific things you might suggest to improve ROI.
5. Discuss whether or not the manager in your firm with the highest residual income is necessarily the best performer.