ACCT346 Discussions Week 7

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ACCT346 Discussions Week 7
Compare and contrast the three types of responsibility centers. What is the best way…

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ACCT346 Discussions Week 7

ACCT346 Discussions Week 7

All Students Post 80 Pages

Responsibility Centers – 44 Pages

Compare and contrast the three types of responsibility centers. What is the best way to evaluate a manager’s performance in each type of center? What is the problem with using only financial measures of performance?…

What do each of the “centers” represent?
How do they measure performance?

It is important to understand how managers are evaluated since you may be evaluated by these same methods someday. Discuss your experiences with the way you are evaluated in your company, and how the managers in your company are evaluated.

problem #1:
A) Assume Lisa Inc has net income $7,000,000, interest expense of $1,500,000 and a tax rate of 40%. Calculate the NOPAT.
b)If this (same) company had sales of $10,000,000 what is the company’s profit margin?
C) What do these amounts tell us?…

Financial Statement Analysis – 36 Pages

Why do managers analyze financial statements? What are they looking for? List three types of decisions that managers can make by analyzing financial statements.

A) What are the differences between the “current ratio” and the “acid-test ratio”? What do these ratios tell management?

B) Suppose net income is much higher than cash flows from operations. Why is this potentially indicative of earnings manipulation?…

problem #1
The Lance Company, provides various services.
Financial information concerning the most recent
year appears below:

Sales $12,000,000
Net operating income $3,300,000
Average operating assets $30,000,000
Ignore the impact of income taxes in your calculation.
Compute the return on investment (ROI) for the company