Hello Sir,
Sir i have confusion whether we have to use net profit or controllable profit
Becoz In Bpp kit Section C( 309- BISCUITS AND CAKES ) in that controllable profit is directly given to us and then substracting head office cost giving the net profit.
Sir can u plz advise me which one do we have to consider?
Thank you
Kind Regards
ROI AND RI
6y ago#1The question specifically says (in the second paragraph) that in future they are to calculate the ROI using the net profit (whereas previously they have calculated it using the controllable profit).
But i have a question, if in case we r not mentioned anything like the previous case study then we will always use Controllable profit , even though we r given net profit after substracting the head office costs. Plz correct me sir if im wrong sir.
Thank you for ur previous reply sir?
6y ago#3Normally (and certainly if we are measuring the managers performance) then we use the controllable profit.