Question: How to do the appropriate performance measure. Please answer all 3 questions Question 3 (30 Points) A group of companies A, B and C operate

How to do the appropriate performance measure. Please answer all 3 questions

Question 3 (30 Points) A group of companies A, B and C operate in automobile industry. Company A in Japan is a parent company holding majority of shares in subsidiary B and C. Company A provides know- how and strategic directions for the group. Company B is located in Indonesia. Company B produces various automobile parts and sells them to company C which is located in Thailand. Company C assembles automobiles and sells all products in Thailand. Company A Company B Company C Required: 3.1 Identify appropriate performance measures for company A, B and C (You do not have to design balanced scorecard) (10 points) 3.2 If management in company A would like to use EVA and RI to measure performance of company B and C, do you think it is appropriate? (10 points) 3.3 Recommend the appropriate transfer pricing policy between company B and C. Provide explanation to support your recommendation. (10 points)

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