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divisional performance

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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October 19, 2017 at 4:07 pm #412490
adarsh1997
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Hi John!
Can we blame the performance of the division if it has based on traceable costs and profits?
I know that traceable profits are associated with the division’s performance.
But my issue is that does the division control these costs? Can we blame the division for these costs?
October 19, 2017 at 4:15 pm #412496
John Moffat
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“Blame” doesn’t come into it unless you are appraising the manager, in which case we are interested in controllable costs.
Traceable costs are relevant if (for example) you are considering whether or not it is worth keeping the division open.
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