Divisional Performance Measurement
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For Example | For Example | ||
{| | {| | ||
| − | Sales|900 | + | Sales||900 |
|- | |- | ||
| − | less VC|400 | + | less VC||400 |
|- | |- | ||
| − | CONTRIBUTION+|500|''(note:no good for management performance measurement because Mgr can control FC)'' | + | CONTRIBUTION+||500||''(note:no good for management performance measurement because Mgr can control FC)'' |
|- | |- | ||
| − | less controllable FC|100 | + | less controllable FC||100 |
|- | |- | ||
| − | CONTROLLABLE PROFIT|400|''(Good for Mgr performance measurement unless it's a profit center they have no control over depreciation)'' | + | 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 | + | less Non-controllable FC||100 |
|- | |- | ||
| − | DIV PROFIT Before Corp Exp's|300|''(Good measure of Division's economic performance)'' | + | DIV PROFIT Before Corp Exp's||300||''(Good measure of Division's economic performance)'' |
|- | |- | ||
| − | Corp Exp|100|''(Arbitrary allocation)'' | + | Corp Exp||100||''(Arbitrary allocation)'' |
|- | |- | ||
| − | DIV NET PROFIT|200|''(Good measure of comparison with peer companies)'' | + | DIV NET PROFIT||200||''(Good measure of comparison with peer companies)'' |
|} | |} | ||
Revision as of 10:13, 9 February 2011
A Divisional perfoamnce measurement could look like this:
For Example
See Divisionalization See Residual Income
