Question - As a financial analyst, you have just been handed the 2008 financial report of the Firm Z, a large, global pharmaceutical company. Firm Z competes in both traditional pharmaceutical products and in evolving biotechnology products. The following data (in billions) on Firm Z and the pharmaceutical industry are available:
Firm Z Industry Average
Sales $2.00 $0.960
Net incme 0.54 0.096
Advertising 0.04 0.160
Research and development 0.16 0.240
New investment in facilities 0.20 0.240
Given these data, evaluate the cost management performance of Firm Z.