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Variance analysis receives some criticism as a performance
measure. What about other measures such as ROI and EVA?
Do research on the Internet and show the reference for the
information. Remember to respond to a colleague's posting also.
Professor’s Note:
Variance analysis compares actual performance to budgeted
performance in the areas of material, labor, and overheads. If
the results of a business unit show all positive variances, should
the manager be rewarded for (excellent) performance? A simple
counter argument can be – what if the manager had padded his
business unit’s budget?
In addition to searching the Internet for text related to this
discussion, watch the following YouTube videos (click on the
following links to access these videos) and post your comments.
http://www.youtube.com/watch?v=M8igsXklfb4
Video 1: Performance Management & Evaluation
http://www.youtube.com/watch?v=omUoKnhuqvY
Video 2: Return on Investment - ROI
http://www.youtube.com/watch?v=4UMUJkIPA-
4&feature=related
Video 3: Economic Value Added - EVA

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Performance Measurement ROI and EVAReflect in ePortfolioSubmi.docx

  • 1. Performance Measurement: ROI and EVA Reflect in ePortfolio Submit Feedback Actions for 'Performance Measurement: ROI and EVA' Previous Next [removed] Show Description Hide Description Variance analysis receives some criticism as a performance measure. What about other measures such as ROI and EVA? Do research on the Internet and show the reference for the information. Remember to respond to a colleague's posting also. Professor’s Note: Variance analysis compares actual performance to budgeted performance in the areas of material, labor, and overheads. If the results of a business unit show all positive variances, should the manager be rewarded for (excellent) performance? A simple counter argument can be – what if the manager had padded his business unit’s budget? In addition to searching the Internet for text related to this discussion, watch the following YouTube videos (click on the following links to access these videos) and post your comments. http://www.youtube.com/watch?v=M8igsXklfb4 Video 1: Performance Management & Evaluation http://www.youtube.com/watch?v=omUoKnhuqvY
  • 2. Video 2: Return on Investment - ROI http://www.youtube.com/watch?v=4UMUJkIPA- 4&feature=related Video 3: Economic Value Added - EVA