Chapter 13 - CHAPTER 13:STRATEGIC ACCOUNTING ISSUES IN...

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CHAPTER 13:STRATEGIC ACCOUNTING ISSUES IN MULTINATIONAL CORPORATIONS Chapter Outline I. The strategic issues faced by a MNC are related to strategy formulation and strategy implementation. A. Strategy formulation is the process of deciding on the goals of the organization and plans for attaining those goals, whereas strategy implementation refers to the process by which managers influence others within the organization to behave in accordance with those goals. B. Capital budgeting is an important activity associated with strategy formulation, and strategies are implemented mainly through operational budgeting and performance evaluation. Accounting plays a major role in these activities as a source of information. II. Accounting provides quantitative information about (a) opportunities and threats as well as strengths and weaknesses, and (b) costs and benefits needed for long-term investment (or capital budgeting) decisions. A. Techniques such as payback period, return on investment (ROI), net present value (NPV), and internal rate of return (IRR) are employed in making long-term investment
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This note was uploaded on 03/21/2012 for the course BACC 102 taught by Professor A during the Spring '11 term at Andhra University.

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Chapter 13 - CHAPTER 13:STRATEGIC ACCOUNTING ISSUES IN...

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