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What way can roi lead to dysfunctional decisions on the part

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Reference no: EM132537677

Question 1: If a market price of a product is determinable, why is it generally considered to be the best transfer price?

Question 2: Performance measurement is perhaps the most important, most misunderstood and most difficult task in management accounting. What critical performance indicators are contained in an effective system of performance measurement?

Question 3: In what way can ROI lead to dysfunctional decisions on the part of the investment center manager? How does the residual Income approach overcome this problem?

Reference no: EM132537677

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