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Controllable profit measures managerial performance

Divisional profit measures divisional performance.

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What is projected income statement?

Projected Income Statement normally includes your estimated future Business Revenues, Cost of Goods Sold, Gross Profit, Controllable Expenses, Non-Controllable Expenses and Net Profit. This statement is utilized to project your financial future in your business.


Is payroll cost a controllable cost?

payroll is not controllable cost.


What is a sentence for the word controllable?

I have several sentences for you.That horse is not controllable.The scientific variable is controllable in the laboratory.I want a controllable temper!


What is Profit center Head?

0inShare. Profit Centres •Business units are created to delegate more authority to operating managers. •The degree of delegation may differs •Complete authority for generating profits is never delegated to a single segment of the business …contd •To create a profit centre: •Manager needs relevant inputs for decision making •There must be effective ways of measuring his performance •It would be interesting to note that the measures need not be financial alone- can you identify a few non financial measures? Advantages of profit centres •Quality of decisions •Speed •Management by exception through effective decentralisation •Better information systems in place •Initiative •Innovation Disadvantages •Loss of control •Loss of focus? •Short run goals? •Quality of decisions •Generalist outlook for the specialist Requirements of a profit centre •Control on costs •Control on revenues Constraints in a profit centre •On authority •Constraints from business units •Top management Who can be profit centres? •Can support facilities or cost centres be converted to or assessed as profit centres? •Eg. Finance, Purchase, Legal… Profit Centre Income Stmt Revenue Less: COGS Variable costs Contribution Margin Fixed expenses incurred in the profit centre Direct Profit Controllable Corporate Charges Controllable Profit Other Corporate Allocations Income Before Taxes Less Taxes Income after taxes Measuring Profitability •Contribution margin- Spread between revenue and variable expenses •Is the profit center head effective if he maximises contribution? •Fixed expenses- Should they be considered? •Can profit centre heads control them? •Direct profit- Incorporates expenses directly or traceable to profit centre •Traceable costs are charged regardless of whether they are controllable or uncontrollable •Controllable profit- The portion of headquarter costs is charged to the profit centre •Income before taxes •Net Income- In come after taxes •Sometimes profit centers may operate in tax haven zones.. Which of the above is the most appropriate measure? Why


How do you non controllable factor affect your risk for heart disease?

wat u mean hoe


What do you mean by cash profit?

Cash profit means profit after tax plus depreciation.


Is electricity cost a controllable cost?

Electricity cost not a controllable cost. The manager cannot influence this type of expense. To the extent where a cost cannot be managed it is indeed a non controllable, now for electricity, to the extent where consumption can be raised or lowered it becomes a controllable cost. If the consumption can be optimized through processes or equipments it then is a controllable cost.


What does monthly profit mean?

a monthly profit means to make a profit every month in a company.


What does profit margin mean?

Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin


What does profit-free mean?

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What is the difference between not-for-profit and non-profit?

No difference. They mean the same thing.


What is the difference between not-profit and non-profit?

No difference. They mean the same thing.