On March 1, 2013, Beldon Corporation purchased land as a factory site for $60,000. An old building on
the property was demolished, and construction began on a new building that was completed on
December 15, 2013. Costs incurred during this period are list
PERFORMANCE MEASUREMENT, COMPENSATION, AND
Examples of financial and nonfinancial measures of performance are:
ROI, residual income, economic value added, and return on sales.
IBO Finance Summary
IBO Finance Summary Y3Q
Accounting based Measures for Business Units:
Companies commonly use four measures to evaluate the economic performance of
Financial and Nonfinancial Performance Measures:
23-16 (30 min.) ROI, comparisons of three companies.
The separate components highlight several features of return on investment not revealed
by a single calculation:
a. The importance of investment turnover as a key to income is stressed.
b. The import