Management Advisory Services (MAS) · Lesson 10 of 12

Performance Management: ROI, Residual Income, EVA, and Transfer Pricing

Evaluate a responsibility center the way the board tests it: compute return on investment through the DuPont components, contrast it with residual income and economic value added, understand why ROI causes managers to reject good projects, measure a segment on its segment margin, and set the transfer price range between two divisions.

16 min read · Super Ea