20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

divisionalization

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

Viewing 4 posts - 1 through 4 (of 4 total)

Author
Posts
October 5, 2022 at 5:25 am #667879
johnbriane
Member
- Topics: 170
- Replies: 160
sir when calculating the ROI we consider the profit after tax figure right?
October 5, 2022 at 9:16 am #667896
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
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
- Replies: 47
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
- Replies: 54478
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).
Author
Posts

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.