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Q. Show the Arguments against the controllability principle?
- Political arguments may occur over such costs which are more subjective than objective when determining controllability. It is not always black and white when determining controllability from uncontrollability.
- Just because a cost is uncontrollable does not mean a manager being assessed should ignore it altogether. As an example if managers recognise there is an interest charge by head office based upon the capital employed used within a division, then to hold them more accountable could help improve efficiency by the minimisation of capital employed. In the case of head office charges, lack of accountability could encourage over consumption of these resources provided centrally.
Differences of EVA and RI EVA uses the replacement not historical accounting cost of assets. Profit calculated under both methods are different e.g. with EVA the repla
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Controlling subsidiaries Mission statement, goals and objectives. Performance measurement systems e.g. financial ratios and multidimensional frameworks. Systems
how much for a dissertation 15,000 words due in June with the topic is Strategic management? thanks
Whether an organization has the resources and competences to deliver a plan
Q. Explain Operating profit margin - performance ratios? Operating profit mar = (PBIT / Turnover) x 100% This is the ratio of operating profit to sales or turno
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Q. Limitations of using balanced scorecard? - Historical performance analysis is no guide to the future. - Manipulation or 'massaging' of performance measures by management,
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