Accounting rate of return Payback Discounted payback Net present value Internal rate of return Profitability Index and capital rationing Effect of inflation and taxation in capital investment appraisal Ethical and non-financial issues in long-term decision-making 8.4 Divisional Performance Evaluation 8.4.1Responsibility centres: Cost centre, Revenue centre, Profit centre, Investment centre 8.4.2 Measures of performance: Profit, Return On Capital Employed(ROCE), Residual Income(RI), Economic Value Added(EVA) and Cash Flow Return on Investment(CFROI) Course Text(s) Recommended Reading 1. Drury C (2008) Management and Cost Accounting, 7th Edition, Cengage Learning, London. 2. Horngren, C.T. etal Cost Accounting – A managerial Emphasis, 13th Edition, Prentice Hall Inc, New Jersey. 3. Lucey T (2006) Costing, 7th Edition, DP Publications. 4. Lucey T (2006) Management Accounting, 5th Edition, DP Publications 5. Vigario F (2007) Managerial Accounting, 4th Edition, LexisNexis, Durban, South Africa. 6. CPA Australia/CIMA/ACCA modules. 7. Articles from professional journals.
Accounting rate of return Payback Discounted payback Net present value Internal rate of return Profitability Index and capital rationing Effect of inflation and taxation in capital investment appraisal Ethical and non-financial issues in long-term decision-making 8.4 Divisional Performance Evaluation 8.4.1Responsibility centres: Cost centre, Revenue centre, Profit centre, Investment centre 8.4.2 Measures of performance: Profit, Return On Capital Employed(ROCE), Residual Income(RI), Economic Value Added(EVA) and Cash Flow Return on Investment(CFROI) Course Text(s) Recommended Reading 1. Drury C (2008) Management and Cost Accounting, 7th Edition, Cengage Learning, London. 2. Horngren, C.T. etal Cost Accounting – A managerial Emphasis, 13th Edition, Prentice Hall Inc, New Jersey. 3. Lucey T (2006) Costing, 7th Edition, DP Publications. 4. Lucey T (2006) Management Accounting, 5th Edition, DP Publications 5. Vigario F (2007) Managerial Accounting, 4th Edition, LexisNexis, Durban, South Africa. 6. CPA Australia/CIMA/ACCA modules. 7. Articles from professional journals.
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