D I S C U S S I O N Q U E S T I O N S
1. Is Figure 11–1 a realistic model of the evaluation and control process? (page 330)
2. What are some examples of behavior controls? Output controls? Input controls?
3. Is EVA an improvement over ROI, ROE, or EPS?
4. How much faith can a manager place in a transfer price as a substitute for a market price in measuring a profit center’s performance?
5. Is the evaluation and control process appropriate for a corporation that emphasizes creativity? Are control and
creativity compatible?
D I S C U S S I O N Q U E S T I O N S
1. Why should you begin a case analysis with a financial analysis? When are other approaches appropriate?
2. What are common-size financial statements? What is their value to case analysis? How are they calculated?
3. When should you gather information outside a case by going to the library or using the Internet? What should
you look for?
4. When is inflation an important issue in conducting case analysis? Why bother?
5. How can you learn what date a case took place
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