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1. Companies use different metrics, such as return on investment (ROI) and economic value added (EVA), to measuring their financial performance. Consider the features of these metrics and respond to the following:
How does EVA compare to ROI and residual income in measuring the financial performance of a company? Is EVA superior to ROI? Explain.
2. The CPA for Hollister Corporation said to its president, “If a product line is generating a loss, then it should be discontinued.” What are your thoughts on the statement?
Keep the following point in mind:
The reasons for discontinuing a product line are accurately identified and supported with explanations.
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Consider an American automaker like GM with production facilities in 50 countries and sales in almost 200 countries! To maximize profits, what decisions does GM have to make in regard to pricing and production?
When Anne and Mary return from the conference they are furious to find out what Jane has done and refuse to authorise payment for the law reports and the camera from the firm's bank account. Advise Tom and Edgar as to their legal position, citing ..
Prepare the budgets Sale, direct Materials Purchase Budget and direct Labour Budget
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Journalize all transactions affecting the Plating department during March, including the entries that have already been posted.
Calculate the schedule variance for each task and the total project and calculate the cost variance for each task and the total project.
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