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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Profit Centre
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 ! 🙂
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).
Got it , thanks!
You are welcome 🙂