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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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