Multinational performance measurement, ROI, RI. The Seaside Corporation manufactures similar products in the United States and Norway. The U.S. and Norwegian operations are organized as decentral- ized divisions. The following information is available for 2017; ROI is calculated as operating income divided by total assets: U.S. Division Norwegian Division 6,840,000 kroner Operating income Total assets ? $7,700,000 15.00% 72,000,000 kroner ROI ? Both investments were made on December 31, 2016. The exchange rate at the time of Seaside's investment in Norway on December 31, 2016, was 9 kroner = $1. During 2017, the Norwegian kroner decreased steadily in value so that the exchange rate on December 31, 2017, is 10 kroner ing 2017 is [(9 + 10) + 2] = 9.5 kroner = $1. $1. The average exchange rate dur- |3D

Multinational performance measurement, ROI, RI. The Seaside Corporation manufactures similar products in the United States and Norway. The U.S. and Norwegian operations are organized as decentral- ized divisions. The following information is available for 2017; ROI is calculated as operating income divided by total assets: U.S. Division Norwegian Division 6,840,000 kroner Operating income Total assets ? $7,700,000 15.00% 72,000,000 kroner ROI ? Both investments were made on December 31, 2016. The exchange rate at the time of Seaside's investment in Norway on December 31, 2016, was 9 kroner = $1. During 2017, the Norwegian kroner decreased steadily in value so that the exchange rate on December 31, 2017, is 10 kroner ing 2017 is [(9 + 10) + 2] = 9.5 kroner = $1. $1. The average exchange rate dur- |3D

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 16E: A multinational corporation has a number of divisions, two of which are the North American Division...

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