Brian Linton's company, United By Blue, sells jewelry and apparel. His company's plans call for continued expansion into other types of products.
Required:
1. How can United By Blue use departmental income statements to assist in understanding and controlling operations?
2. Are departmental income statements always the best measure of a department's performance? Explain.
3. Provide examples of nonfinancial performance indicators United By Blue might use as part of a balanced scorecard system of performance evaluation.