APMP5

Syllabus D2. Divisional performance 2 / 7

a) Describe, compute and evaluate performance measures relevant in a divisionalised organisation structure including ROI, RI and Economic value added (EVA).
b) Discuss the need for separate measures in respect of managerial and divisional performance.
c) Discuss the circumstances in which a transfer pricing policy may be needed and discuss the necessary criteria for its design.
d) Demonstrate and evaluate the use of alternative bases for transfer pricing.
e) Explain and demonstrate issues that require consideration when setting transfer prices in multinational companies.
Divisional performance