User Account

All Pages

Performance evaluation based on accounting measures

Assignment Help Managerial Accounting
Reference no: EM1394043 , Length: 300 words

Read "Using Shareholder Value to Evaluate Strategic Choices" by Nick Fera, Management Accounting (November 1997).

The basic principle of the article is that performance evaluation based on accounting measures alone is not sufficient. The evaluation of a business unit or of the unit's manager must also consider the business unit's performance in creating shareholder value. Based on ideas from Alfred Rappaport's book, Creating Shareholder Value, the article develops the measures of cash flow and market risk. An illustration for a hypothetical firm is provided.

After reading the article, thoughtfully respond. In your response, consider why it is important for firms and managers to consider shareholder value, and the key factors in determining shareholder value.

Download:- Evaluate Strategic Choices.docx

Reference no: EM1394043

Questions Cloud

Strengths and weaknesses of aggregate and community : Examine and explain the strengths and weaknesses of aggregate and community where aggregate resides. Utilize APA 6th edition format.
Provides principles for allocating the fair value : Business Combinations, provides principles for allocating the fair value of a acquired business. When the collective fair values of the separately identified assets acquired and liabilities assumed exceed the fair value of the consideration transf..
Interaction dummy variables : Let's suppose that we have 2 variables year and age.. I use STATA to make them into dummy variables as follows:
Find out where corporate responsibility ends : Select an industry of your choice also find out explain how ethical behaviour also social responsibility could benefit such an industry. Provide specific e.g. to support your response.
Performance evaluation based on accounting measures : Read Using Shareholder Value to Evaluate Strategic Choices - The basic principle of the article is that performance evaluation based on accounting measures alone is not sufficient.
Description of descriptive and inferential statistics : What are the main differences between descriptive and inferential statistics? Give examples of each. When would random sampling not be the best approach to sample selection? Give an example.
How could other industries apply the cooperative model : Explain how could other industries apply the cooperative model used by Avalanche to achieve efficiencies in areas other than software support? Explain.
Break even analysis of luxury skyboxes built : When planning the new baseball stadium for Washington DC, you are asked to find the break-even point for the number of luxury skyboxes built.
Difference of martian code and earth code : Suppose that you discover a new life form on Mars. These organisms have DNA containing the same four nucleotides as Earth DNA. They also make proteins using a triplet code, so they use the same 64 codons that Earth organisms do.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Importance of operating cycle

What is an operating cycle? Why is it important? What are some methods your organization uses to improve the operating cycle?

  Determine budget contingency

What is a budget contingency and what are 3 reasons to have such a "safety net" in place? Have you been involved in projects where it was necessary to employ contingency funds?

  Information about relevant cost analysis

What are the two potential problems in relevant-cost analysis? Give an example of an irrelevant cost. What makes the example irrelevant.

  Business question-cvp analysis

Gabby's Wedding Cakes creates elaborate wedding cakes. Calculate the break-even point for a month in units. How many cakes must be sold to earn a monthly profit of $10,000?

  Determine predetermined overhead rate

Determine the predetermined overhead rate. Determine the amount of overhead applied during the year. Was overhead overapplied or underapplied? How much?

  Determining the target cost

Suppose you have just started a business to manufacture your newest invention, the photon gismo. Let's say you believe that after a few years on the market, photon gismos will sell for about $125.

  Measuring performance with product costing data

The following table presents the weekly average of direct materials costs per unit for two products. How could the manager of the department that makes these products use this information?

  Qualitative and quantitative approaches

Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making?

  Computing budgeted cost of basketballs

Stang Sports Equipment Company made 40,000 basketballs in a given year. Its manufacturing costs were $288,000 variable and $95,000 fixed. Suppose that no price changes will take place in the following year and that no changes in production techniq..

  Compute the break-even point in sales

MAM603:    Determine whether the company should discontinue operating the Consumer Division.If the company had discontinued the division for 2010, determine what net income would have been.

  Ramifications of price discrimination

Thomas Selling, an expert on nuclear strategy and arms control, examined in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), " The power to constrain the adversary depends on the power to bind oneself." Describe t..

  Target costing in japan

What is the effect of target costing and value engineering on the use of variances?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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