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HI SIR
I have question for this paper at JUNE 12.
1. IN Q1 part(ii), when calculate the EVA, use 262322-2662322*0.3, I understand this step, but I think it should also added the marketing cost 175800. The answer do not added that. In the question, there is a sentence stated that: ‘Marketing spending is for the short-term promotion of the offers only’. what does this sentence mean? is the reason why the marketing cost should be added?
2 how to understand the quality of performance? I know the SIX sigma is used to improve the quality of performance. but I do not understand how to understand this term?
thanks sirIf marketing is for short term promotin only it is treated a an expense.If it is to enhance the long-term standing of the business it is to be capitalised for EVA.
For the other questin, they just want the company to perform better with higher quality such as more accurate invoices.
is it acceptable for one to answer say sub question d before b or c without leaving space after answering a
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