Questions from Management Accounting

Q: Explain how return on investment (ROI) is calculated and how

Explain how return on investment (ROI) is calculated and how it can be decomposed into two financial measures.

Q: Explain how and why the use of ROI for performance evaluation can

Explain how and why the use of ROI for performance evaluation can cause managers to make decisions that could be harmful to an entity in the long run.

Q: Explain how residual income is calculated, and define required rate of

Explain how residual income is calculated, and define required rate of return in your own words.

Q: Explain why the use of residual income for performance evaluation provides better

Explain 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 organ...

Q: Arnie’s Flowers is a small Mt Macedon florist shop. Arnie sells

Arnie’s Flowers is a small Mt Macedon florist shop. Arnie sells flowers for bouquets, and she also prepares and delivers flower arrangements. Required (a) Arnie is trying to decide how much to charge...

Q: Explain how EVA differs from residual income.

Explain how EVA differs from residual income.

Q: Explain the differences between financial and non-financial performance measures and

Explain the differences between financial and non-financial performance measures and give two examples of each.

Q: Suppose that a travel agency decided it would no longer compensate employees

Suppose that a travel agency decided it would no longer compensate employees with sales commissions, but instead pay a salary with a bonus for high customer satisfaction ratings. What problems would y...

Q: (a) Pick two public companies, go to their websites

(a) Pick two public companies, go to their websites and identify their major strategies. (b) Pick one of the companies from part (a) and go to the website of a competitor in the same industry. (For ex...

Q: Explain why demand might increase for relevant and useful information in the

Explain why demand might increase for relevant and useful information in the future. What professional skills will help you meet that need?