Divisional Performance Measurement: Difference between revisions

Revision as of 08:10, 9 February 2011

A Divisional perfoamnce measurement could look like this:

For Example

@@ Line 2: / Line 2: @@
 For Example
-*Sales...........................900
+{|
-*less VC.........................400
+|-Sales|900
-*CONTRIBUTION+...................500...''(note:no good for management performance measurement because Mgr can control FC)''
+|-less VC|400
-*less controllable FC............100
+|-CONTRIBUTION+|500|''(note:no good for management performance measurement because Mgr can control FC)''
-*CONTROLLABLE PROFIT.............400...''(Good for Mgr performance measurement unless it's a profit center they have no control over depreciation)''
+|-less controllable FC|100
-*less Non-controllable FC........100
+|-CONTROLLABLE PROFIT|400|''(Good for Mgr performance measurement unless it's a profit center they have no control over depreciation)''
-*DIV PROFIT Before Corp Exp's.....300...''(Good measure of Division's economic performance)''
+|-less Non-controllable FC|100
-*Corp Exp.........................100...'(Arbitrary allocation)
+|-DIV PROFIT Before Corp Exp's|300|''(Good measure of Division's economic performance)''
-*DIV NET PROFIT...................200...''(Good measure of comparison with peer companies)''
+|-Corp Exp|100|''(Arbitrary allocation)''
+|-DIV NET PROFIT|200|''(Good measure of comparison with peer companies)''
+\}
 See [[Divisionalization]]