Management accounting: Information for creating and managing value (4/e): Chapter 13 - Kim Langfield-Smith, Helen Thorne
Management accounting: Information for creating and managing value (4/e): Chapter 13 - Kim Langfield-Smith, Helen Thorne
Chapter 13 - Financial performance measures for investment centres and reward systems. After completing this chapter, you should be able to: calculate an investment centre’s return on investment (ROI), and residual income; describe some advantages and limitations of both ROI and residual income as performance measures; explain how to minimise the negative behavioural incentives associated with using return on investment to evaluate performance;...