Divisional Performance Measurement
From Wikireedia
(Difference between revisions)
(16 intermediate revisions by one user not shown) | |||
Line 1: | Line 1: | ||
− | A Divisional | + | A Divisional performance measurement could look like this: |
For Example | For Example | ||
− | {| | + | {| border="1" align="center" style="text-align:left;" |
− | |Sales | + | |Sales |
+ | |900.00 | ||
|- | |- | ||
− | less VC | + | |less VC |
+ | |400.00 | ||
|- | |- | ||
− | CONTRIBUTION+|500|'' | + | |CONTRIBUTION+ |
+ | |500.00 | ||
+ | |''No good for management performance measurement because Mgr can control FC'' | ||
|- | |- | ||
− | less controllable FC|100 | + | |less controllable FC |
+ | |100.00 | ||
|- | |- | ||
− | CONTROLLABLE PROFIT|400|'' | + | |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 | + | |less Non-controllable FC |
+ | |100.00 | ||
|- | |- | ||
− | DIV PROFIT Before Corp Exp's|300|'' | + | |DIV PROFIT Before Corp Exp's |
+ | |300.00 | ||
+ | |''Good measure of Division's economic performance'' | ||
|- | |- | ||
− | Corp Exp|100|'' | + | |Corp Exp |
+ | |100.00 | ||
+ | |''Arbitrary allocation'' | ||
|- | |- | ||
− | DIV NET PROFIT|200|'' | + | |DIV NET PROFIT |
+ | |200.00 | ||
+ | |''Good measure of comparison with peer companies'' | ||
|} | |} | ||
− | See [[Divisionalization]] | + | *See [[Divisionalization]] |
− | See [[Residual Income]] | + | *See [[Residual Income]] |
+ | *See [[Performance Pyramid]] | ||
[[Category:Finance]] | [[Category:Finance]] |
Latest revision as of 17:49, 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