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Q. Show the Arguments against the controllability principle?
- Political arguments may occur over such costs which are more subjective than objective when determining controllability. It is not always black and white when determining controllability from uncontrollability.
- Just because a cost is uncontrollable does not mean a manager being assessed should ignore it altogether. As an example if managers recognise there is an interest charge by head office based upon the capital employed used within a division, then to hold them more accountable could help improve efficiency by the minimisation of capital employed. In the case of head office charges, lack of accountability could encourage over consumption of these resources provided centrally.
Q. Illustration of brand orientated divisional structure? The Whitbread Group Plc, have several independent divisions or SBUs managing its popular brands of hotels, restauran
QUESTION Strategic decisions are the essence of strategic management. According to Pears & Robinson, typically, strategic issues have certain dimensions. Write short notes on e
Q. Explain about Residual income? Residual income is profit earned by a division less a "notional interest charge" for investment of finance within it.
Q. Show the Modern methods of budgeting? A flexible budgeting system produces many budgets projecting costs and revenues over different ranges of production or sales volumes.
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