Divisional Performance Measurement
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(Difference between revisions)
Line 2: | Line 2: | ||
For Example | For Example | ||
− | + | {| | |
− | + | |-Sales|900 | |
− | + | |-less VC|400 | |
− | + | |-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)'' | ||
+ | \} | ||
See [[Divisionalization]] | See [[Divisionalization]] |
Revision as of 10:10, 9 February 2011
A Divisional perfoamnce measurement could look like this:
For Example