Sir I remember that there is a small difference in the meaning of the term operating profit and controllable profit
I remember that operating profit is profit before interest and tax and controllable profit is the profit that can be controlled
Is the difference the fact that in operating profit we include allocated and administrative costs but not for controllable profit since they cannot be controlled
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Difference between operating profit and controllable profit
5y ago#1Controllable profit is calculated based only on those items of expenditure that are controlled by the manager of the division. We ignore those costs that are controlled by the head office.
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