Divisional Performance Measurement: Difference between revisions
From MediaWiki
Jump to navigationJump to search
No edit summary |
No edit summary |
||
| Line 4: | Line 4: | ||
{| border="1" align="center" style="text-align:center;" | {| border="1" align="center" style="text-align:center;" | ||
Sales | |Sales | ||
|900 | |900 | ||
|- | |- | ||
Revision as of 08:27, 9 February 2011
A Divisional performance measurement could look like this:
For Example
CONTRIBUTION+|500|(note:no good for management performance measurement because Mgr can control FC) less controllable FC|100 CONTROLLABLE PROFIT|400|(Good for Mgr performance measurement unless it's a profit center they have no control over depreciation) less Non-controllable FC|100 DIV PROFIT Before Corp Exp's|300|(Good measure of Division's economic performance) Corp Exp|100|(Arbitrary allocation) DIV NET PROFIT|200|(Good measure of comparison with peer companies)| Sales | 900 |
| less VC | 400
}| |
See Divisionalization See Residual Income
