answersLogoWhite

0


Best Answer

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.

User Avatar

Wiki User

βˆ™ 14y ago
This answer is:
User Avatar
More answers
User Avatar

AnswerBot

βˆ™ 9mo ago

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.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is Controllable margin most useful for?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How is CM ratio useful in planning business operations?

The contribution margin ratio is the percentage of a company's contribution margin to its net sales


Is payroll cost a controllable cost?

payroll is not controllable cost.


What is A declination diagram is a part of the information?

In the lower margin of most larger maps


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 the comparative and superlative forms of useful?

more useful, the most useful


What is the Superlative and comparative to the word useful?

Most useful and more useful.


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.


Why cant machine convert all their input into useful work?

There are a number of reasons why machines cannot convert all of their input into useful work. This is because they were made by humans and have a margin of error.


Comparative and superlative forms of useful?

Comparative: more useful Superlative: most useful


Differentiate between fixed and variable overheads. which one of them is controllable and what is the effect of controlling overheads on contribution margin and finally on per unit cost?

A fixed overhead will remain the same regardless of production levels while a variable overhead will change in relation to production levels. Controlling Overheads will reduce per unit costs thereby increasing contribution margin.


What are the 16 most controllable 45 handguns made by the US?

I doubt that there are 16 different TYPES of .45 caliber handguns made in the US. You will need to define your question a bit- revolver or auto pistol, which .45, and how YOU define "controllable".


What is the superlative form of useful?

um... I'm pretty sure it's more helpful and the most helpful?