Riverside Mining and Manufacturing narrative-1

Riverside Mining and Manufacturing narrative-1 - Riverside...

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Riverside Mining and Manufacturing is a vertically integrated company that mines, processes, and finishes various non-precious metals and minerals. Riverside has decentralized both on a geographical and on an operational basis. For example, Exploration and Development, which includes all mining operations, has been designated a strategic business unit (SBU). There are multiple divisions within this SBU, such as North American Exploration and Development, South American Exploration and Development, and other divisions. Similarly, Refining, which has often been located near the mines, is another strategic business unit and is divisionalized by geographical region. Riverside has a clearly stated management control system that includes longstanding policies on transfer pricing, performance evaluation, and management compensation. Transfers are made at full cost plus a markup to approximate net realizable value. Riverside’s primary operating divisions (such as mining) are required to fill internal orders before servicing outside orders. Each division has full responsibility over setting prices and sales targets as well as monitoring costs. Also, divisional managers
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This note was uploaded on 03/24/2012 for the course ACCOUNTING IAF taught by Professor Ganesh during the Spring '12 term at Seneca.

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Riverside Mining and Manufacturing narrative-1 - Riverside...

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