What are pros and the cons of eva as a performance measures

Assignment Help Managerial Accounting
Reference no: EM13863867

Performance Measurement

INSTRUCTIONS

The assignment is based on the case Wyaderm Pharmaceuticals, in your coursepack (Performance Measurement). The background readings for the case are summarised in Chapters 9 and 10 of the textbook: K. A. Merchant & W. A. Van der Stede, Management Control Systems - Performance Measurement, Evaluation and Incentives, 3rd Edition (distributed in May/June 2015).

2. This is an individual assignment, so we should regard it as a "virtual exam". Please, do not ask questions on the course discussion board. Do not ask questions directly to the professor, unless you need to clarify the text.

3. Questions are specific, please answer briefly and to point. Prepare maximum 5 pages (+cover) to summarize your conclusions and calculations. Please state your assumptions clearly, if any.

IMPORTANT NOTE

1) Using the worksheet attached determine, what are the appropriate figures for:

a) 2000 EVA for the North American Dermatology division;

b) 2000 EVA bonus payment for a manager earning $200,000 (assuming 100% linkage to EVA).

I intentionally left some numbers and some formulas in the spreadsheet.

2) Based on your calculations for Question 1, what recommendations would you make to Védrine concerning the decisions to be made in January, 2001?

3) In general terms, how do you evaluate the effectiveness of the incentive system at Wyaderm Pharmaceuticals? Which changes would you suggest if any?

4) What are the pros and the cons of EVA as a performance measures?

Attachment:- Vyaderm-worksheet.xls

Reference no: EM13863867

Jackson construction company-job order costing system

Jackson Construction Company uses a job order costing system. In May 2008, Jackson made a $1,650,000 bid to build a pedestrian overpass over the beach highway in Gulfport, M

Weekly break-even sales volume and sales revenue

What is the weekly break-even sales volume and sales revenue, by product - what is the weekly sales volume & sales revenue that they would need to achieve? Again, ignore depr

Increase in income tax payable

The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods, in the format illustrated by Gr

Prepare a cash budget showing the months and quarter

Lucy's Gourmet Basket shop is planning to open for business on July 1, 20XX and she is concerned about  the survivability of her company. She has contacted you to p

Identify the stakeholders affected by the externalities

ACC518 - Current Developments in Accounting Thought - Additional Assignment Explains the decision made by the regulators in terms of public interest theory - Explain the decis

Prepare the trial balance of vernon yung

Journalize each transaction. Explanations are not required - post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts

Ron smith became the new ceo of peak ltd

Outline briefly why the situation constitutes an audit risk. List and explain the component of the audit risk model affected. Indicate the key account balance(s) affected. Ind

Determine the accounting rate of return of the new business

The equipment will be depreciated over a five-year period using straight-line depreciation with no residual value. Determine the accounting rate of return of the new business.

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd