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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › divisional performance
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?
“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.