Analyses the performance of the us-company coca cola

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Reference no: EM131098462

Written essay for Management Accounting & Control course.

Performance measurement systems that were successful in the past are becoming obsolete and in some cases are dysfunctional and obstructive to improvements. A dynamic and more competitive environment requires dynamic benchmarks to get a clear picture of whether the firm is a value generator or a value destroyer.

The EVA based performance measurement system is the basis on which the company should take appropriate decisions related to the choice of strategy, capital allocation, merger & acquisitions, divesting business and goal setting.

While deciding resource allocation it becomes necessary to appreciate the EVA impact of such decision. Management Accountants have the full knowledge about the company that would create value. They are in a position to guide a company in its restructuring mission for value creation. So a Management Accountant is expected to successfully transform traditional management system into value based management system.

Each team analyses the performance of the US-Company Coca Cola based on the traditional performance measurement and the EVA - concept.

Reference no: EM131098462

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