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PBIT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › PBIT

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 1, 2022 at 8:09 am #657043
    TANSINYEE
    Member
    • Topics: 7
    • Replies: 5
    • ☆

    Which profit should be used to calculate PBIT?
    Operating profit or controllable profit..? can I get the reason for choosing the profit to cal PBIT?

    June 1, 2022 at 3:35 pm #657079
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    It depends for what reason you are being asked to calculate it!!!

    If it for appraising the performance of a divisional manager then we take the controllable profit because the manager cannot be made responsible for factors that he/she does not control.

    Have you watched my free lectures on divisional performance measurement?

    June 3, 2022 at 6:49 pm #657284
    TANSINYEE
    Member
    • Topics: 7
    • Replies: 5
    • ☆

    Got it !! Thanks ya

    June 4, 2022 at 8:57 am #657319
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    You are welcome.

  • Author
    Posts
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