This video covers "How to Measure the Performance of Investment Center" by using Return on Investment (ROI) and Residual Income (RI) including formulas, benefits, and limitations of each method. An investment center is a division with a cost and revenue stream and here manager does have the authority to invest in new assets or dispose of existing ones.
#CMA #CPA #BEC #PERFORMANCEMEASUREMENT #DIVISIONALPERFORMANCEMEASUREMENT
Divisional Performance Measurement, Return on Investment, ROI, Residual Income, RI, ROI vs RI, Formula of Return on Investment, Limitations of Return on Investment, Formula for Residual Income, Limitations of Residual Income, Benefits of ROI, Benefits of RI, Controllability, Concept of Controllability, Controllable Costs, Traceable Costs, ROI, RI, How to assess the performance of the division, How to assess Divisional Manager Performance, Performance Measurement Practice Questions, CMA Part 1, CPA BEC, Difference between Division and Manager Performance, What is Cost Center, What is Revenue Center, What is Profit Center, What is Investment Center, Strategic Business Unit, SBU, Definition of SBU, Responsibility Centers, Decentralized Organization,
