Accounting Question (Steve Jobs)

Pyramid Printing Company’s controller, Pete Roberts, is contemplating the restructure of a management incentive program. Presently, managers are compensated on achievement of levels of operating income. However, recent implementations of JIT and new investments have resulted in improved performance.

Consider the calculations of return on investment, residual income, Economic Value Added ®, and return on sales. Which do you believe to be a superior method of measuring performance, and why? Select the measure that you believe would be appropriate for Pyramid and justify your selection.

Required:

Half to one page only with at least 2 references