Evaluation
The companys management control system is not soefficient due to following reasons:
y
The 3 product divisions OEM sales department areseparate leading to high inventory costs.
y
AM being a marketing division has different target to bemet than the OEMs sales departments.
y
AM has to meet annual ROI target.
y
OEM sales departments have to meet annual sales revenuetarget.
y
Beginning of the year net assets are being used for ROIcalculation