Page 143 - APM Integrated Workbook STUDENT S18-J19

Divisional performance appraisal and transfer pricing

7.4 VBM evaluation

Advantages Disadvantages

 Focus on value (not profit)  Need to adapt MIS to take
makes organisation more account of new measures.
forward looking.
 Can become an exercise in
 EVA is one of the main valuing everything and
measures used and therefore changing nothing.
the pros and cons of EVA also
apply.

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