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Sec C from September/December 2017 Sports Co
Could you explain the calculation of controllable profit as to why have we included depreciation and the head office cost?The profit in the question is after charging depreciation and head office cost.
The head office costs and the depreciation on the assets controlled by head office and not controllable by the division. They are therefore added back so as to arrive at the profit that is controllable by the division.
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