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Part a.
You are required to critically evaluate the following statement:
"Both Return on Investment (ROI) and Economic Value Added (EVA), when used as performance measures in an organisation, encourage managers to be short-term in their focus and decision making".
If your critical evaluation tends to agree with the statement, briefly outline how the short term nature of such measures can be overcome.
Part b.
Many organisations use transfer pricing when transferring products between different divisions of the same organisation. You are required to discuss in detail the advantages and disadvantages of each of the following four methods:
1) Market based transfer prices;2) Full cost transfer prices;3) Cost-plus a mark-up transfer prices; and4) Negotiated transfer prices.
Make a budget plan for diet chocolate candy bars. Be sure to comperise all revenue sources and expenses associated with this particular product.
Develop a value chain for the airline industry
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Barone Supply bought equipment at a cost of $48,000 on January 2, 1997. It originally had an estimated life of ten years and a salvage value of $8,000. Barone uses the straight-line depreciation method. On December 31, 2000
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