Part 2 – Section D.3. Financial measures

[Hameed]

???? demonstrate an understanding of the issues involved in determining product profitability, business unit profitability, and customer profitability, including cost measurement, cost allocation, investment measurement, and valuation ???? calculate product-line profitability, business unit profitability, and customer profitability given a set of data and assumptions ???? evaluate customers and products on the basis of profitability and identify ways to improve profitability and/or drop unprofitable customers and products ???? define and calculate return on investment ???? calculate return on investment based on the Dupont Model and describe how this model enhances basic return on investment calculations ???? analyze and interpret return on investment calculations and evaluate performance on the basis of the analysis ???? define and calculate residual income ???? analyze and interpret residual income calculations and evaluate performance on the basis of the analysis ???? compare and contrast the benefits and limitations of return on investment and residual income as measures of performance ???? define and calculate economic value added (EVA) ???? demonstrate an understanding of how economic value added differs from return on investment and residual income measures ???? recognize that market value added is another measure of performance ???? demonstrate an understanding that several factors such as revenue and expense recognition policies may affect the measurement of income and reduce comparability among business units and companies ???? demonstrate an understanding that several factors such as inventory measurement policies, joint asset sharing, and overall asset measurement may affect the measurement of investment and reduce comparability among business units and companies ???? recognize that some organizations evaluate performance on the basis of cash flow return on investment ???? compare and contrast cash flow return on investment with return on investment ???? demonstrate an understanding of the effect international operations can have on performance measurement

[yahoonewman]

thank you very muschshshshshsh