162) Discuss the issues and complications that may arise when multinational corporations conduct performance

measurement and comparisons among divisions located in different countries.

163) The CEO of Geelong Pen Company wants to establish an accounting-based performance measurement system

for the company's new plant. The company has an accounting information system sufficient to support a fairly

sophisticated performance measurement system. The new plant is going to be considered an investment centre

since its products will be markedly different from others the company currently sells. The new plant will have

no internal dealings with other plants within the company.

Required:

What are some of the key steps that should be undertaken in the establishment of an accounting-based

performance measurement system?

164) Companies are increasingly using non-financial measures to evaluate performance. Why? Since these measures

do not come from the company's financial records, why are they used?

 

 

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