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Q. Show the Merits of using return on investment?
Merits of using return on investment (ROI)
- Relative (percentage) measure so performance can be compared 'relatively' for divisions or business units which are different sizes.
- ROCE is a well understood measure for 'users' of financial accounting.
- Forces a manager to be efficient and effective with resources e.g. money or capital employed to buy assets, when attempting to improve profitability.
Illustrations of internal failure cost The internal perspective may control performance by assessment of internal quality failure. Costs incurred before customer has received
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Question 1: Elaborate on the following business strategies giving examples, and discuss under what circumstances these business strategies are applied. a) Forward integrati
application of g.e matrix
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