Divisional Performance Measurement: Difference between revisions
From MediaWiki
Jump to navigationJump to search
No edit summary |
No edit summary |
||
| (One intermediate revision by the same user not shown) | |||
| Line 37: | Line 37: | ||
|} | |} | ||
See [[Divisionalization]] | *See [[Divisionalization]] | ||
See [[Residual Income]] | *See [[Residual Income]] | ||
*See [[Performance Pyramid]] | |||
[[Category:Finance]] | [[Category:Finance]] | ||
Latest revision as of 15:49, 19 September 2012
A Divisional performance measurement could look like this:
For Example
| Sales | 900.00 | |
| less VC | 400.00 | |
| CONTRIBUTION+ | 500.00 | No good for management performance measurement because Mgr can control FC |
| less controllable FC | 100.00 | |
| CONTROLLABLE PROFIT | 400.00 | Good for Mgr performance measurement unless it's a profit center they have no control over depreciation |
| less Non-controllable FC | 100.00 | |
| DIV PROFIT Before Corp Exp's | 300.00 | Good measure of Division's economic performance |
| Corp Exp | 100.00 | Arbitrary allocation |
| DIV NET PROFIT | 200.00 | Good measure of comparison with peer companies |
- See Divisionalization
- See Residual Income
- See Performance Pyramid
