The senior management of ABC Corp. has proposed the following three performance measures for the company: 1. Net income as a percent of stockholders' equity 2. Revenue growth 3. Employee satisfaction Management believes these three measures combine both financial and nonfinancial measures and, as such, are superior to using just financial measures. What advice would you give ABC Corp. for improving its performance measurement system?

The senior management of ABC Corp. has proposed the following three performance measures for the company: 1. Net income as a percent of stockholders' equity 2. Revenue growth 3. Employee satisfaction Management believes these three measures combine both financial and nonfinancial measures and, as such, are superior to using just financial measures. What advice would you give ABC Corp. for improving its performance measurement system?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 6EA: As manager of department B in MarIeys Manufacturing, based on the costs you identified in the...

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As manager of department B in MarIeys Manufacturing, based on the costs you identified in the previous exercise for further research, how does this impact the financial performance of your department, and what might be some questions you want to ask or solutions you might propose to Marleys management?
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You are asked to briefly answer the following questions:Profitability ratios are a set of ratios that indicate how profits relate to sales and the size of a company's capital, and this category includes various ratios such as: Gross Profit Margin Ratio, Net Profit Margin Ratio, Return on Assets Ratio and Return on Equity Ratio of funds. One of the top executives at the company where you work is asking for your help in understanding the following:1. How the above efficiency indicators are calculated.2. The company decided to pay cash to suppliers to achieve better purchase prices. What is the effect of this fact on the value of the aforementioned efficiency indicators?3. Could (beyond the above fact) be affected in any way positively the figures in question for the company where you work?