管理会计（高等教育出版社）
于增彪（清华大学） 改编春水冰心
余绪缨（厦门大学） 审校.
海马先生13单元
performance evaluation
in the decentralized firm
Questions for writing and discussion
1. In centralized decision making, decisions are made at the very top level, and lower-level managers are responsible for implementing the decisions. For decentralized decision making, decisions are made and implemented by lower-level managers.
2. Decentralization is the delegation of decision-making authority to lower levels.
3. Reasons for decentralization include access to local information, cognitive limitations, more timely respons, focusing of central management, training, and motivation.
4. Knowledge of local conditions may be critical for decisions; local managers are aware of the conditions, whereas higher-level managers may not be.
5. We cannot say without knowing the asts employed to earn the profits. Even knowing the asts, other factors may be important before a decision regarding relative performance can be made.
6. ROI (first division) = 25% ($500,000/
$2,000,000). ROI (cond division) = 10% ($3,000,000/$30,000,000). Bad on return on investment only, the first division is the better of the two becau more profit per dollar invested was earned.
7. Margin = Operating income/Sales, and Turnover = Sales/Average operating asts.
By breaking ROI into margin and turnover, more information is available to asss performance. Knowledge of margin and turnover gives more insight into why the ROI may change from one period to the next.
8. ROI (1) encourages managers to pay attention to the relationships among sales, expens, and investment, (2) encourages cost efficiency, and (3) discourages excessive investment in operating asts. Incread profitability can be achieved (all el being equal) by increasing revenues, decreasing expens, or lowering investment.
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9. ROI may discourage managers from investing in projects that would increa the profitability of the firm but decrea the division’s ROI. It also may encourage myopic behavior by encouraging managers to make decisions that are profitable in the short run but harmful in the long run (e.g., cutting rearch and development costs).
10.秋叶正红 EVA is the difference between after-tax operating income and the total annual cost of capital.
11. ROI and EVA can encourage short-run optimization. This problem can be overcome by using additional measures of performance that are long-run in their orientation.
12. Owners may have difficulty developing goal congruence with managers becau managers may not want to work as hard as the owner would like and becau managers may wish to u the company’s resources for their own benefit. Properly structured incentive pay plans may be successful in overcoming the problems.
13. A transfer price is the price charged for goods that are transferred from one division to another.
14. Transfer prices impact the revenues of the transferring division and the costs of the buying division and, thus, the profits of both divisions. A transfer price can affect the profits of the firm becau it can affect the output decision of the buying division. If the price is t too high (low), then the output of the buying division may be too low (high). Since the transfer price can affect firmwide profitability, higher management may be tempted to interfere with the autonomy of a division and dictate the price (rather than letti
ng the divisional manager make the pricing decision).
15. The transfer pricing problem is finding a transfer price that simultaneously satisfies three objectives: accurate performance evaluation, goal congruence, and prervation of divisional autonomy.
16. The opportunity cost approach to transfer pricing identifies the minimum and maximum transfer prices. The minimum transfer price is the one that makes the transferring division no wor off, and the maximum transfer price is the one that makes the buying division no wor off.
17. Agree. At least one division will be made better off, and firm profits will increa.
wifi重置18. Market price. Minimum price = Maximum price = Market price. Any other price would make at least one division wor off, and firm profits may decrea if the price is not market price.
日本家纹19. Minimum = $47, and maximum = $50.
20.清明诗词大全 Negotiated transfer prices allow both divisions to be made better off whenever opportunity costing signals that a transfer should take place. Becau both can be made better off, no interference from headquarters is needed. Moreover, the price emerging is necessarily a mutually satisfactory price. In effect, negotiated prices can simultaneously satisfy the objectives of accurate performance evaluation, firmwide efficiency, and prervation of divisional autonomy.
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