Dear sir
I was practicing ROI and RI questions from BPP exam kit.Q309 Biscuits and Cakes (6/12) . In this question, when calculating the ROI,was using the Net profit figure .
Other question number 320)CIM Co (Sep/Dec 15 amended) here when calculating the ROI i used Net profit figure but when i saw the answer it was wrong. Actually it was using the Controllable profit.
I am so confused where to use controllable profit and Net profit .
Sir could you please make me clear about it. I am sitting PM on 9th of September 2020
Thank you in advance
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ROI
5y ago#1The Biscuits and Cakes question specifically says that the ROI is to be calculated using the net profit after deducting a share of the head office costs (the second sentence in the second paragraph).
In the CIM question it does not say that, and since the ROI us being used to calculate the managers performance it should be calculated on the controllable profit.
Thank you so much Sir
5y ago#3You are welcome :-)
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