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Controllable margin usually derived as sales - variable cost=contribution - controllable fixed cost and useful for the performance measurement of a divisional manager in a company, usually calculating ro1 and ri.

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14y ago

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Controllable margin is most useful for assessing the efficiency of a company's operations management in controlling variable and semi-variable costs. It helps identify the portion of operating income that can be directly influenced by management decisions and actions. This metric is particularly valuable for evaluating the effectiveness of cost control measures and improving profitability.

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1y ago
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Q: What is Controllable margin most useful for?
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