Unlike commercial organization which are profit orientated, there are non-profit organizations like charities, public services,etc which are expected to break-even instead of making profit. In this non-profit organization, there are no profit centres or investment centres but we will still see a decentralized environment with revenue and cost centres.
Unable to use such ratio like return […]

Some managers or readers who are assigned to build up an activity based costing system might be at a loss on how to even embark on this assignment.To do it, please look at the earlier articles on steps, conditions, factors,etc are provided.
In this article, the overview approach is given to implement the activity based costing […]

As managers, we always try to relate the overheads costs by APPORTIONING to the various cost centres.
Remember that activity based costing is basically a ” one-step attribution system” as costs are NOT APPORTIONED between activities-the costs of each activity are RELATED DIRECTLY to products. Cost attribution is the process of relating cost to cost centres […]

Very often, Return On Capital Employed (ROCE) or also known as Return On Investment (ROI) is used in many divisional performance evaluation as ROCE measures the relationship between a division’s profit and the amount of the group has invested in the division.
At a quick glance profit percentage of capital employed, profit % of sales and […]