Transcription of Segmental Profitability Analysis and Evaluation
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Segmental Profitability Analysis and Evaluation
Management Accounting | 303 Segmental Profitability Analysis and Evaluation Unless a business is a not-for-profit business, all businesses have as a primary goal the earning of profit. In the long run, sustained and satisfactory profit requires good decision-making and performance Evaluation . The income statement, while serving many purposes, is a primarily a tool of performance Evaluation from a management point of view. When prepared on a Segmental basis, the use of the income statement for Evaluation purposes can be highly tend to be complex and varied in nature.
Segmental Profitability Analysis and Evaluation Unless a business is a not-for-profit business, all businesses have as a primary goal the earning of profit. In the long run, sustained and satisfactory profit requires good ... common ways of segmentation include the following: 1. Product lines 5. States 2. Departments 6. Plants 3. Divisions 7 ...
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