How can return on investment result in sub-optimization when it is used as a performance measure?
Because performance measures are used to reward performance, managers use them as decision criteria when they evaluate alternative courses of action. For example, if ROI is the performance criterion, a division manager will only invest in new projects that will result in an increase in his/her division's ROI. This is sub-optimal if the overall organization would be better off by the division manager's investment in available projects with lower ROIs.
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AT&T, GE, Samsung, Shell Oil, and others have engaged in a(n) ________ exercise by sponsoring the Innovation Challenge, where top MBA students compete in teams to address company problems
A) crowdcasting B) syndication C) net monitoring D) product-preference E) advertising evaluation
An important pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become 'stuck-in-the-middle.'
Answer the following statement true (T) or false (F)
With managerial decision making, decision evaluation is useful
A. whether the conclusion is positive or negative. B. only if negative feedback has been received. C. whether the manager or the employee is involved. D. only if positive feedback has been received. E. only if the employee is involved.
For Year 2, the Sacramento Corporation had beginning and ending Retained Earnings balances of $173,967 and $211,900, respectively. Also during Year 2, the board of directors declared cash dividends of $25,500, which were paid during Year 2. The board also declared a stock dividend, which was issued and required a transfer in the amount of $15,500 to paid-in capital. Total expenses during Year 2 were $40,916. Based on this information, what was the amount of total revenue for Year 2?
A. $119,849 B. $104,349 C. $148,467 D. $145,484