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divisionalization

This topic has 3 replies, 3 voices, and was last updated 2 years ago by John Moffat.

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October 5, 2022 at 5:25 am #667879
johnbriane
Member
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sir when calculating the ROI we consider the profit after tax figure right?
October 5, 2022 at 9:16 am #667896
John Moffat
Keymaster
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Yes, although if measuring divisional performance the divisions themselves do not pay tax (it is the company as a whole that pays tax).
October 6, 2022 at 8:29 am #667980
kvz911
Participant
- Topics: 12
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Sir, the formula for Divisional ROI is,
Controllable Profit/ Controllable Investment.
Right??
October 6, 2022 at 4:57 pm #668049
John Moffat
Keymaster
- Topics: 57
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It depends on whether it is the performance of the division or the performance of the manager that is being measured (and, of course, the wording of the question).
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