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Profit Centre

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Profit Centre

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 30, 2020 at 8:55 am #597078
    Nikitagarwal
    Participant
    • Topics: 154
    • Replies: 147
    • ☆☆☆

    Hello Sir,
    Hope you are keeping well!
    Question: its ACCA copyright question:
    https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/performance-measurement.html
    While defining the profit center it said that the depreciation wont be added to the controllable profit so will that be the case if in question it is specified that the company is profit center so we will add back the depreciation charged ?
    Thank you sir for the help provided ! 🙂

    November 30, 2020 at 10:26 am #597106
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54812
    • ☆☆☆☆☆

    If given the profit (which is after depreciation) then to get the controllable profit of a profit centre we need to add back the depreciation (because it is not controllable by the division).

    November 30, 2020 at 3:08 pm #597157
    Nikitagarwal
    Participant
    • Topics: 154
    • Replies: 147
    • ☆☆☆

    Got it , thanks!

    November 30, 2020 at 4:57 pm #597175
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54812
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Profit Centre’ is closed to new replies.

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