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. It is highly unlikely that a business will have only one product. Single product businesses exist only in text book theory for illustrative purposes of certain business principles.

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

Loading..

Tags:

  Analysis, Evaluation, Profitability, Segmental, Segmental profitability analysis and evaluation

Information

Related search queries