| 13-1 | Explain the role of managerial accounting in achieving goal congruence. |
| 13-2 | Compute an investment center’s return on investment (ROI), residual income (RI), and economic value added (EVA). |
| 13-3 | Explain how a manager can improve ROI by increasing either the sales margin or capital turnover. |
| 13-4 | Describe some advantages and disadvantages of both ROI and residual income as divisional performance measures. |
| 13-5 | Explain how to measure a division’s income and invested capital. |
| 13-6 | Use the general economic rule to set an optimal transfer price. |
| 13-7 | Explain how to base a transfer price on market prices, costs, or negotiations. |
| 13-8 | Understand the behavioral issues of incentives, goal congruence, and internal controls. |
