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Horngren's Cost Accounting: A Managerial Emphasis, 16th Edition Solution Manual

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    i TABLE OF CONTENTS Preface i v Dedication ................................ ................................ ................................ ................................ ........ v Supplements Available for 1 6 th Edition v i Alternative Suggested Chapter Sequences v iii Categorization of Assignment Material x i i Presentation of Solutions xxvii i Major Changes in Text for the 16 th Edition xx ix Changes in Assignment Material for the 16 th Edition xxx v Chapter Solutions 1 The Manager and Management Accounting 1 - 1 2 An Introduction to Cost Terms and Purposes 2 - 1 3 Cost - Volume - Profit Analysis 3 - 1 4 Job Costing 4 - 1 5 Activity - Based Costing and Activity - Based Management 5 - 1 6 Master Budget and Responsibility Accounting 6 - 1 7 Flexible Budgets, Direct - Cost Variances, and Management Control 7 - 1 8 Flexible Budgets, Overhead Cost Variances, and Management Control 8 - 1 9 Inventory Costing and Capacity Analysis 9 - 1 10 Determining How Costs Behave 10 - 1 11 Decision Making and Relevant Information 11 - 1 12 Strategy, Balanced Scorecard, and Strategic Profitability Analysis 1 2 - 1 1 3 Pricing Decisions and Cost Management 1 3 - 1 14 Cost Allocation, Customer - Profitability Analysis, and Sales - Variance Analysis 14 - 1 15 Allocation of Support - Department Costs, Common Costs, and Revenues 15 - 1 16 Cost Allocation: Joint Products and Byproducts 16 - 1 17 Process Costing 17 - 1 18 Spoilage, Rework, and Scrap 18 - 1 19 Balanced Scorecard: Quality, Time, and the Theory of Constraints 19 - 1 20 Inventory Management, Just - in - Time, and Simplified Costing Methods 20 - 1 21 Capital Budgeting and Cost Analysis 21 - 1 22 Management Control Systems, Transfer Pricing, and Multinational Considerations 22 - 1 23 Performance Measurement, Compensation, and Multinational Considerations 23 - 1

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    vi ALTERNATIVE SUGGESTED CHAPTER SEQUENCES The Preface to Cost Accounting noted that our aim in organizing the material was to present a modular, flexible organization that permits a course to be custom tailored. This section presents six possible sequences for a first course in cost accounting. For each of these six sequences, we also present the sequence of a second course that would result in coverage of many or all of the topics in Cost Accounting . Outlines I – V all include Chapters 1 to 9 in varying orders of sequence. Outline VI has a strong (almost exclusive) focus on the decision making role of cost accounting. We analyzed the sequences of chapters assigned by many users of the 1 5 th edition. Although many instructors tended to follow the sequence in the text, other instructors tailored sequences to fit their particular desires. These tailored sequences varied considerably. By far the most popular departure was to assign the chapter on process costing (Chapter 17) immediately after the coverage of job costing (Chapter 4) and activity - based costing (Chapter 5). The next most popular departure was to assign Chapter 10 after Chapter 2 or 3. All the accompanying alternative assignment schedules have an optional provision to facilitate tailoring a course. Obviously, instructors should alter any suggested sequence to suit their preferences. OUTLINE I: This basic course provides a balance of topics between the major purposes of cost accounting: 1. Calculating the cost of products, services, and other cost objects 2. Obtaining information for planning and control and performance evaluation 3. Analyzing relevant information for making decisions Finishing the first course with Chapters 11 and 1 3 means that topics with less procedural emphasis are highlighted in the last weeks of the course; these two chapters also introduce topics covered in more detail in a second course. Some instructors may assign Chapter 10 without using the Appendix on “Regression Analysis,” preferring to delay use of the Appendix until the second course (especially if many students have not been exposed to regression analysis at the time of the basic course). OUTLINE II: This basic course covers the same chapters as Outline I but assigns Chapter 10 (Determining How Costs Behaves) immediately after Chapter 3 (Cost Volume - Profit Analysis). It also assigns Chapter 1 2 on Strategy, Balanced Scorecard, and Strategic Profitability Analysis. This first part of the s econd c ourse emphasizes cost management and performance evaluation before covering the six chapters (14 – 20) on cost allocation and other aspects of costing systems. OUTLINE III: After covering Chapters 1 to 9 and 11 in the basic course, this sequence finishes with a chapter on strategic issues (Chapter 1 2 ) and two chapters on cost allocation topics (Chapters 14 and 15). Some instructors view it as important that students who take only one cost accounting course become aware of how pervasive cost allocation issues are in practice.

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    vii OUTLINE IV: This basic course is similar to Outline II with one key exception : Chapter 17 (Process Costing) is covered immediately after Chapter 5. Many instructors prefer to cover job costing and process costing in sequence so that their differences are highlighted. OUTLINE V: This basic course emphasizes technical cost accounting topics more than the other five outlines. Chapters 17 and 18 extend Chapters 4 and 5; covering 4, 5, 17, and 18 as a single section of the course provides students with a solid understanding of product costing alternatives. OUTLINE VI: This basic course is adopted by instructors who wish to put most emphasis on the decision making and performance evaluation aspects of cost accounting. Finishing the basic course with Chapters 22 and 23 means that behavioral issues are highlighted in the final weeks of the course.

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    viii OUTLINE I OUTLINE II OUTLINE III BASIC COURSE Chapter Number of Sessions Chapter Number of Sessions Chapter Number of Sessions 1 (1) 1 (1) 1 (1) 2 (2) 2 (2) 2 (2) 3 (2) 3 (2) 3 (2) 4 (3) 10 (2) 4 (3) 5 (3) 4 (3) 5 (3) 6 (2) 5 (3) 6 (2) 7 (2) 6 (2) 7 (2) 8 (2) 7 (2) 8 (2) 9 (2) 8 (2) 9 (2) 10 (2) 9 (2) 11 (2) 11 (2) 11 (2) 1 2 (2) 1 3 (2) 12 (2) 14 (2) 13 (2) 15 (2) Tests (3) Tests (3) Tests (3) Optional (4) Optional (2) Optional (2) 32 32 32 SECOND COURSE Chapter Number of Sessions Chapter Number of Sessions Chapter Number of Sessions 1 2 (3) 21 (3) 10 (2) 14 (2) 22 (2) 1 3 (2) 15 (2) 23 (2) 21 (3) 16 (2) 14 (3) 15 (2) 17 (2) 15 (2) 17 (3) 18 (2) 16 (2) 18 (2) 19 (2) 17 (3) 19 (2) 20 (2) 18 (2) 20 (3) 21 (2) 19 (2) 22 (2) 22 (2) 20 (2) 23 (2) 23 (2) Tests (3) Tests (3) Tests (3) Optional (6) Optional (6) Optional (6) 32 32 32

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    ix OUTLINE IV OUTLINE V OUTLINE VI BASIC COURSE Chapter Number of Sessions Chapter Number of Sessions Chapter Number of Sessions 1 (1) 1 (1) 1 (1) 2 (2) 2 (2) 2 (2) 3 (2) 3 (2) 3 (2) 10 (2) 4 (3) 10 (2) 4 (2) 5 (3) 4 (2) 5 (2) 17 (3) 5 (2) 17 (2) 18 (2) 6 (2) 6 (2) 6 (3) 11 (2) 7 (2) 7 (2) 12 (2) 8 (2) 8 (2) 13 (3) 9 (2) 9 (2) 22 (2) 11 (2) 23 (2) 1 3 (2) Tests (3) Tests (3) Tests (3) Optional (4) Optional (4) Optional (5) 32 32 32 SECOND COURSE Chapter Number of Sessions Chapter Number of Sessions Chapter Number of Sessions 1 2 (3) 10 (2) 7 (2) 21 (3) 11 (2) 8 (2) 22 (2) 12 (2) 9 (2) 23 (2) 13 (3) 17 (3) 14 (3) 21 (3) 18 (2) 15 (2) 14 (2) 19 (2) 16 (2) 15 (2) 20 (2) 18 (2) 16 (2) 21 (3) 19 (2) 19 (2) 14 (2) 20 (2) 20 (2) 15 (2) 22 (2) 16 (2) 23 (2) Tests (3) Tests (3) Tests (3) Optional (6) Optional (3) Optional (5) 32 32 32

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    x CATEGORIZATION OF ASSIGNMENT MATERIAL The assignment material in the 1 6 th edition has been developed to offer instructors a broad range of options in developing a challenging and interesting course. The following exhibits assist instructors in selecting assignment material. Exhibits P - l and P - 2 show assignment material that is based on s ervice or nonprofit and on merchandising (retail, wholesale , or distribution) sectors of the economy. Although many of the assignment s in the 1 6 th edition are based in the manufacturing sector, Exhibits P - l and P - 2 provide many examples for instructors who wish to either select assignment material from a broad range of sectors or intend to concentrate on sectors outside manufacturing. 1. SERVICE AND NONPROFIT SECTORS: These assignments i nclude settings such as accounting firms, law firms, advertising agencies, bank and finance companies, lodging companies, transportation companies, and government agencies 2. MERCHANDISING SECTORS: These assignments i nclude settings such as distributors, wholesalers, and retailers There is growing demand from instructors for assignment ma terial in three specific areas — ethics, global or international, and mode rn cost management. Exhibits P - 3 to P - 5 show assignment material in the 1 6 th edition on these three topics. 3. ETHICS. The second - to - last problem of many chapters incorporates an ethical issue facing a management accountant or a manager. Examples include pressure for cooking the books, concealing unfavorable information, and conflicts of interest between management incentives and company value s . Many of these problems require students to consider the IMA Statement of Ethical Professional Practice on p.1 7 of the text. 4. GLOBAL AND IN TERNATIONAL DIMENSIONS. These assignments i nclude material based outside the United States or problems pertaining to companies with operations in more than one country. 5. MODERN COST MANAGEMENT FRONTIER IDEAS. These assignments i nclude material that an instructor can use to highlight areas such as customer focus, key success factors, balanced scorecard, value - chain analysis, strategic analysis of operating income, JIT, and continuous improvement. Assignment material related to activity - based costing (ABC), activity - based management (ABM), and cost drivers is found in many chapters.

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    xi EXHIBIT P - 1 ASSIGNMENT MATERIAL FROM SERVICE AND NOT - FOR - PROFIT SECTORS Chapter Number Context 1 1 - 1 9 Fast - food restaurants; value chain, cost classification 1 - 20 Consultation services; key success factors 1 - 27 Windshield replacement; professional ethics 1 - 2 8 I nternet company; planning and control 1 - 3 6 Publishing company; ethics; end - of - year actions 2 2 - 23 Marketing research; c lassification of costs 2 - 2 6 Restaurant ; fixed and variable costs 2 - 31 Training s ervice s ; t otal costs and unit costs 3 3 - 23 Travel agency; CVP analysis 3 - 2 4 Restaurant; CVP analysis 3 - 2 7 Restaurant ; CVP analysis 3 - 3 4 Music Society ; CVP analysis 3 - 3 8 Tourism ; CVP analysis 3 - 3 9 Daycare ; CVP analysis, t arget operating income 3 - 40 Marketing ; CVP analysis, m argin of s afety 3 - 4 5 Printing Company ; Alternative cost structures and sensitivity analysis 3 - 52 Museum; gross margin and contribution margin 4 4 - 23 Residential construction; job costing, normal, actual 4 - 2 6 Management c onsulting firm, job costing 4 - 2 9 University press; job costing, journal entries 4 - 33 Canadian accounting firm; actual, normal and variation from normal costing 4 - 34 Web - design firm; actual, normal, and variation from normal costing 4 - 37 Law firm; job costing 4 - 3 8 Law firm; job costing 4 - 44 4 - 46 Printing; allocation and proration of overhead Market Research; Job costing 5 5 - 1 9 Testing labs; activity - based costing, cost hierarchy 5 - 20 Professional services firm; alternative allocation bases 5 - 2 4 Architectural firm; department costing based on activities 5 - 2 5 Printing company; activity - based costing 5 - 2 9 Custom framing; activity - based costing 5 - 30 Banking; activity - based costing, product costing, cross - subsidization 5 - 3 1 Law firm; job costing, single direct - and indirect - cost categories 5 - 3 2 Law firm; job costing, multiple direct - and single indirect - cost categories 5 - 3 3 Law firm; job costing, multiple direct - and indirect - cost categories 5 - 3 5 Lawn care, landscaping; first - stage allocation, ABC 5 - 3 6 Radiology center; department, activity - cost rates

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    xii 5 - 3 9 Health care; activity - based costing system EXHIBIT P - 1 (Continued) Chapter Number Context 6 6 - 21 Environmental testing; sales budget 6 - 2 8 Gutter - cleaning ; budgeted cost of jobs 6 - 33 Tour company; responsibility accounting, stretch targets 6 - 3 9 Restaurant; purchasing agent responsibility accounting 7 7 - 33 7 - 3 5 7 - 46 Student loan financing; static and flexible budgets C leaning service ; variance analysis Auto detailing; comprehensive variance analysis 8 8 - 2 9 8 - 32 Food delivery service; overhead variances Financial services; overhead variances 8 - 4 5 8 - 4 6 Food inspection ; non - financial variances Cloud services provider; overhead variances 9 9 - 45 Hospital chain; cost allocation, downward demand spiral 9 - 46 Hospital chain; cost allocation, responsibility accounting, ethics 10 10 - 2 1 Delivery; linear cost function 10 - 22 Car rental contracts; variable - , fixed - and mixed - cost functions 10 - 27 Travel services; estimating a cost function, high - low method 10 - 28 Customer service; estimating a cost function, high - low method 10 - 29 Physician services; linear cost approximation 10 - 31 Professional services; regression analysis 10 - 36 Produce club; high - low method, regression analysis 10 - 37 Sports stadium; high - low method, regression analysis 10 - 38 Hotel chain; activity - based costing, choosing cost drivers 10 - 39 Agricultural transportation; interpreting regression analysis 10 - 42 Nonprofit hospital; regression, choosing among models 10 - 43 Nonprofit hospital; multiple regression 11 11 - 30 Convenience store; relevant costs, decision on closing stores 11 - 31 Printing press; choosing customers 11 - 32 Bakery; relevance of equipment costs 11 - 38 Limousine service; opportunity costs, relevant costs 11 - 47 Fishing tours; dropping and adding tours 12 12 - 29 Architectural firm; strategy, balanced scorecard 12 - 30 Architectural firm; strategic analysis of operating income 12 - 31 Architectural firm; analysis of growth, price - recovery, and productivity components 12 - 32 Architectural firm; identifying and managing unused capacity 12 - 41 Cable and internet services; balanced scorecard, social performance 12 - 42 Airline; balanced scorecard, environmental and social performance

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    xiii EXHIBIT P - 1 (Continued) Chapter Number Context 13 13 - 17 Tool repair shop; value - added, nonvalue - added costs 13 - 18 Architects; target operating income, value - added costs 13 - 22 Hotel management; cost - plus target return on investment pricing 13 - 25 Hotel; price discrimination 13 - 28 Amusement park; value - engineering, target costing, ABC 13 - 30 Repair services; cost - plus, time and materials, ethics 13 - 31 Temp labor agency; cost - plus and market - based pricing 13 - 32 Testing labs; cost - plus and market - based pricing 13 - 33 Recycling; life - cycle costing 13 - 34 Airline; price discrimination 13 - 35 Airline; anti - trust laws, pricing 13 - 36 Interior decoration; preparing a bid, pricing, ethics 14 14 - 18 Hospitals; cost allocation 14 - 20 Repair service; customer profitability 14 - 23 Casino; cost allocation to divisions 14 - 25 Sports team; variance analysis, multiple products 14 - 33 Interior design; customer - cost hierarchy and profitability analysis 14 - 36 Insurance Company; cost - hierarchy income statement, allocation of corporate costs 15 15 - 17 Trucking operations; single - rate method, budgeted versus actual costs 15 - 18 Trucking operations; dual - rate method, budgeted versus actual costs 15 - 19 Management consulting; direct and step - down support department cost allocation 15 - 20 Management consulting; reciprocal method support department cost allocation 15 - 23 Internet and phone services; a llocation of common living costs 15 - 24 Consulting services; allocation of common travel costs 15 - 29 University; fixed cost allocation 15 - 35 Hotel; revenue allocation, bundled products 15 - 36 Service; direct, step - down, reciprocal support department allocation 17 17 - 33 Spa; Operation costing 19 19 - 23 Carwash center; quality improvement, relevant costs and revenues 19 - 25 University; waiting time 19 - 26 University; waiting time, relevant costs, student satisfaction 19 - 30 Pizza delivery; quality improvement, Pareto diagram, cause - and - effect diagram 19 - 36 Healthcare group; waiting time, patient satisfaction, compensation

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    xiv EXHIBIT P - 1 (Continued) Chapter Number Context 21 21 - 23 Hospital; capital budgeting methods, no income taxes 21 - 24 Hospital; capital budgeting methods, income taxes 21 - 27 21 - 28 21 - 31 Construction company; payback and NPV methods, no income taxes Clinic; DCT, accrual accounting rate of return, working capital, evaluation of performance Dermatology; p roject choice 21 - 29 21 - 38 Bakery; new equipment purchase, income taxes Laundromat; payback methods, even and uneven cash flors 21 - 40 21 - 42 Entertainment center; recognizing cash flows for capital investment projects Construction and mining sales and services; NPV of information system 22 22 - 1 8 Hotel chain ; benefits and costs of decentralization 22 - 36 Composting service; full cost and market - based transfer prices 23 23 - 22 23 - 25 23 - 28 Educational services; comparison of divisions, DuPont method Reinsurance and financial services; ROI, RI, EVA Venture capital; Capital budgeting, RI 23 - 34 Restaurants; RI, measurement alternatives for performance measures 23 - 36 Media group; ROI, RI, DuPont method, investment decisions, balanced scorecard 23 - 37 Media group; division managers' compensation, levers of control 23 - 42 Health spas; RI, EVA, measurement alternatives, goal congruence

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    xv EXHIBIT P - 2 ASSIGNMENT MATERIAL FROM MERCHANDISING SECTORS Chapter Number Context 2 2 - 24 Entertainment store; c lassification of costs 2 - 34 Department store; cost of goods purchased, cost of goods sold, and income statement 2 - 3 5 Retail outlet store; cost of goods purchased, cost of goods sold and income statement 3 3 - 24 D eli sub shop ; CVP 3 - 2 6 Car dealer; CVP analysis , income taxes 3 - 2 8 Jeans wholesaler ; CVP and sensitivity analysis 3 - 30 Rug dealer; space rental terms, operating leverage 3 - 3 5 Men’ s clothing retailer; contribution margin, decision making 3 - 37 Retail store; decision making under uncertainty, expected value 3 - 43 Shoe store; sales commissions, CVP analysis 3 - 44 Shoe store; sales commissions, CVP analysis 3 - 46 Sunglasses store; CVP, alternative cost structures 3 - 51 Luggage carrier retailer; sales mix, CVP analysis 5 5 - 2 7 Supermarket; ABC, product - line profitability 5 - 2 8 Furniture wholesaler; ABC, customer profitability 5 - 37 Pharmaceuticals distributor; ABC 5 - 43 Retail store ; activity - based costing and management 6 6 - 30 Convenience store chain; activity - based budgeting 6 - 31 Convenience store chain; activity - based budgeting, kaizen budgeting 6 - 34 Retail store; cash flow, sensitivity analysis 10 10 - 46 10 - 4 7 Fashion store; interpreting regression results, matching time periods Department store chain; cost drivers, ABC, simple regression analysis 10 - 4 8 Department store chain; cost drivers, ABC, multiple regression analysis 11 11 - 27 Food store; R elevant costs , contribution margin, product emphasis 11 - 30 Convenience stores; relevant costs, closing and opening stores 11 - 49 Restaurant supply; Dropping a customer, ABC, ethics 12 12 - 21 T - shirts distributor; strategy, balanced scorecard 12 - 22 T - shirts distributor; strategic analysis of operating income 12 - 23 T - shirts distributor; analysis of growth, price - recovery, and productivity components 12 - 24 T - shirts distributor; identifying and managing unused capacity 13 13 - 19 Distributor; target prices, target costs, ABC 13 - 21 Solar - heating systems seller; target costs, process - design changes

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    xvi EXHIBIT P - 2 (Continued) Chapter Number Context 14 14 - 1 9 Environmental products distributor; customer profitability, customer - cost hierarchy xx cccvcvc 14 - 21 Pharmaceutical distributor; customer profitability 14 - 2 6 Wine glass retailer; variance analysis, multiple products 14 - 31 Paper distributor; customer profitability 15 15 - 21 Online book retailer; direct and step - down support department cost allocation 15 - 22 Online book retailer; reciprocal method support department cost allocation 15 - 25 R etailer; revenue allocation 15 - 26 Auto sales; allocation of common costs 15 - 27 Department store; single - rate, dual - rate and practical capacity allocation 20 20 - 21 Sporting goods retailer; EOQ 20 - 22 Sporting goods retailer; EOQ, effect of parameter changes 20 - 23 Textile retailer; EOQ 20 - 33 R etailer; sensitivity of EOQ to changes in relevant ordering and carrying costs, cost of prediction error 21 21 - 25 21 - 41 Soda distributor; Capital budgeting with uneven cash flows Food retailer; NPV, inflation, income taxes 21 - 42 Construction supplier; NPV of information system , income taxes 22 22 - 1 6 Convenience store chain; evaluating management control systems, balanced scorecard 23 23 - 2 1 23 - 27 Trucking; metrics for drivers Automobile retailer; ROI, RI, EVA 23 - 38 Multi - channel sales; Executive compensation, balanced scorecard

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    xvii EXHIBIT P - 3 ASSIGNMENT MATERIAL ON ETHICS Chapter Number Context 1 1 - 2 6 Division performance 1 - 2 7 Division performance 1 - 3 4 Pharmaceutical company, budgeting 1 - 3 5 Snack foods division; End - of - year actions 1 - 3 6 Consumer magazines; End - of - year actions 1 - 3 7 Furniture manufacturing g lobal company, end - of - year actions 2 2 - 4 7 C ost classification , ethicssz 3 3 - 53 Environmental costs, CVP analysis , ethics 4 4 - 4 5 Job costing, ethics 5 5 - 4 2 Electronics; ABC, implementation, ethics 6 6 - 4 6 Manufacturer; slack, ethics 7 7 - 4 7 GPS manufacturer; price and efficiency variances, benchmarking, ethics 8 8 - 4 8 Overhead variances, ethics 9 9 - 4 6 Hospital chain; cost allocation, responsibility accounting, ethics 11 11 - 4 9 Dropping a customer, activity - based costing, ethics 13 1 3 - 30 Repair services; cost - plus, time and materials, ethics 13 - 3 6 Interior decoration ; preparing a bid, pricing , ethics 14 14 - 41 Writing smaller orders; customer profitability and ethics 17 17 - 47 Rock - crushing plants; benchmarking, ethics 1 8 1 8 - 45 Job costing, classifying spoilage, ethics 19 19 - 20 19 - 3 7 Car seats; costs of quality ethics Auto parts manufacturer; ethics and quality 20 20 - 41 Pump manufacturer; JIT production, relevant benefits, relevant costs, ethics 22 22 - 3 3 Chocolate manufacturer; t ransfer pricing, goal congruence, ethics

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    xviii 23 23 - 41 Manufacturer ; ethics, levers of control EXHIBIT P - 4 ASSIGNMENT MATERIAL WITH GLOBAL OR INTERNATIONAL SETTING Chapte r Number Context 1 1 - 3 7 Contract bidding, ethical and cultural issues 3 3 - 23 Travel agency, CVP analysis 3 - 31 International cost structure differences, CVP analysis 4 4 - 33 Canadian accounting firm; actual, normal and variation from normal costing 6 6 - 2 5 Mexico bicycle manufacturer; revenues, production and purchases budgets 7 7 - 45 Memory card manufacturer in Taiwan; direct - cost and selling price variances 8 8 - 2 8 Telecommunications company; manufacturing overhead, standard - costing system 10 10 - 3 9 Agricultural transportation in Canada; interpreting regression results 11 11 - 3 6 International outsourcing; relevant costs, exchange rates 16 16 - 42 Flash memory chips manufacturer in Taiwan ; joint - cost allocation, process further or sell 21 21 - 34 21 - 3 6 Prototype chip manufacturer; e quipment replacement, no income taxes Fragrance manufacturer; DCF, sensitivity analysis, no income taxes

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    xix EXHIBIT P - 4 (Continued) Chapte r Number Context 22 22 - 20 Multinational computer company; transfer pricing, alternative transfer - pricing methods, global income tax minimization 22 - 22 22 - 23 22 - 30 Chainsaw manufacturer; Multinational transfer pricing, global tax minimization Chainsaw manufacturer; Multinational transfer pricing, global tax minimization High - end fertilizers; multinational transfer pricing, global tax minimization 22 - 3 2 Component manufacturer; international transfer pricing, taxes, goal congruence 23 23 - 2 9 Manufacturing, U.S. and Norway; multinational performance measurement, ROI, RI 23 - 3 5 Multinational firm , U.S. , France , and Australia; differing risk, comparison of profit, ROI, and RI

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