INVESTMENT CENTRE PROBLEMS
ROI = Operating Income / Average Operating Assets (both current and fixed assets)
ABC Co has 3 divisions
TOTAL OPERATING ASSETS
The University of Western Ontario
DAN Management and Organizational Studies
M anagement Accounting - 3372
2011 / 2012
Subject to Revision if Required
READ & DO BEFORE CLASS - TO BE TAKEN UP IN CLASS
DISCUSSION OF NEW MATERIAL
This is just a rough outline with some of the points to consider. Not all points are included. For exam
purposes you would want to carefully develop your best thoughts in each section.
Pricing dispute between managers
Should Fettinger (mana
PLEASE NOTE: These are rough notes only, intended to help you think through the case.
Exam solutions are expected to be in fully developed sentence and paragraph form.
Is the budget process effective and efficient at achieving corporate g
Why not skip the trade-in and just sell the new car without the trade-in?
Customer probably won't go for it - she WANTS to trade in.
Would have to give 8% discount
Sales price of car:
Less 8% discount
New sales price
Shuman's price p
PLEASE NOTE: This is a rough ouline only, intended to help you think through the case.
Exam solutions are expected to be in full sentence and paragraph form.
SAMPSON ELECTRONICS LIMITED (SEL)
MCS is leading to constant disputes between divisions
the process where one unit manager makes a decision that is not interest of the entire company
a transfer price where the proce charged to the buying division differes from that paid to selling division
Management Control System is ineffective
It does not lead to payment of bonuses, and managers are discouraged
New bonus system is proposed
Background / Environment
IE is a high-tech company operating in many business areas; d
PLEASE NOTE: This is a rough outline only. It is intended to help you think through the case.
Exam solutions are expected to be in fully developed sentences and paragraphs.
Charlottesville Fire Department (CFD)
Is the RTI suitable as a MCS to ens
Chapter 5 Business Ethics
Ethics study of what constitutes right or wrong behavior. Has to do with fairness, justness, rightness,
or wrongness of action.
Study of business ethics looks at decisions businesses make or have to make and whether those