Which of the following elements is not used in the calculation of economic value added for an investment center?
a. An investment center's return on investment.
b. A company's weighted-average cost of capital.
c. An investment center's after-tax operating income.
d. An investment center's current liabilities.
e. An investment center's total assets.
Question text
Suddath Corporation has no excess capacity. If the firm desires to implement the general transfer-pricing rule, opportunity cost would be equal to:
a.the summation of variable cost plus fixed cost.
b.the total difference in the cost of production between two divisions.
c. the contribution margin forgone from the lost external sale.
d. the direct expenses incurred in producing the goods.
d. market value.
Question text
What practice is present when divisional managers throughout an organization work together in an effort to achieve the organization's goals?
a. Centralization of objectives.
b. Negotiation by subordinates.
c. Participatory management.
d. Goal congruence.
e. Goal attainment.
Question text
A manufacturer's raw-material purchasing department would likely be classified as a:
