040510_for_posting_v2003

040510_for_posting_v2003 - EXAM III (Final) Tuesday, May 4,...

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Unformatted text preview: EXAM III (Final) Tuesday, May 4, 2010 8-10 pm, room to be announced. Mark your calendars. Do not make plane reservations to leave town before this date. Topics to be covered: CH 11 Segment Reporting and Decentralization (App 11-A, not App 11-B) CH 12 Relevant Costs for Decision Making CH 13 Capital Budgeting and Time Value of Money (App. 13-A, B, C) Kattelus-Spring 2010 1 Kattelus-Spring 2010 2 CH 11 Segment reporting and decentralization Managers Dilemma: The Board gave a directive to top management to make changes in order to better achieve company-wide goals. Top management has decided to cut the least profitable segment in order to meet that directive. Which segment should be dropped? Kattelus-Spring 2010 3 Key Concepts Contribution margin can be computed for a: segment , e.g., a cost, profit, or investment center product line , e.g., Chevy Malibu or Blazer sales channel e.g., online or retail stores A segment should be held accountable for its variable and traceable fixed costs, not the common fixed costs Return on investment (ROI) and residual income are performance measures that can be Responsibility Centers (Which is a cost, profit, or investment center?) Kattelus-Spring 2010 4 Salty Snacks Product Manger Bottling Plant...
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This note was uploaded on 10/17/2011 for the course ECON 101 taught by Professor Thompson during the Spring '11 term at Michigan State University.

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040510_for_posting_v2003 - EXAM III (Final) Tuesday, May 4,...

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