7.What are the two key principles of performance measurement?
8.List three characteristics of an effective performance measure.
9.How are cost center managers commonly evaluated?
10.What does the term kaizen mean?
11.How are profit center managers commonly evaluated?
12.Define ROI. List two advantages and two disadvantages of using ROI as a measure to evaluate investment centers.
13.Define residual income. What is the difference between economic value added (EVA) and residual income?
14.Why is transfer pricing necessary in organizations with multiple divisions?
15.What are the three common approaches to transfer pricing? List one advantage and one disadvantage associated with each of these three approaches.