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ROI AND RI

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ROI AND RI

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 17, 2020 at 12:41 pm #589516
    Avatarmacmonie
    Participant
    • Topics: 14
    • Replies: 14
    • ☆

    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

    October 17, 2020 at 3:36 pm #589558
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    The 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).

    October 18, 2020 at 11:42 am #589691
    Avatarmacmonie
    Participant
    • Topics: 14
    • Replies: 14
    • ☆

    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?

    October 18, 2020 at 3:23 pm #589719
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    Normally (and certainly if we are measuring the managers performance) then we use the controllable profit.

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