So how do we calculate controllable profits for Residual Income?
I came across a question where Interest charges (90),central administration (30) , IT cost (50) and Net profit (1200) are all added together to form controllable profits.
and assets at the start of the year is taken for notional int .
Dint quite understand how. :/
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divisional performance
9y ago#1You have asked the same question as a comment on a lecture, and I have answered you there :-)
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