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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Controllable profits
Hello tutors, sorry again. I have a questions regards the controllable profits.
From my understanding is that controllable profits are calculated base on divisional sales minus controllable cost in the division in arriving the PBIT.
However, I think that depreciation would not be relevant in this case. I have encounter some questions for example ” this machine will ad 2500 USD to divisional profits after depreciation or if its before depreciation of let say 500 ”
In this case, what is the amount do we need to add back to the controllable profit, if the 2500 is before depreciation and another case is after depreciation.
Thank you so much.