This week’s topics
Divisional Performance Measurement
- Decentralisation and autonomy
- Return on Investment (ROI)
- Residual Income (RI)
- The controllability principle
- CIMA P2 Divisional Performance Measurement - Divisionalised structures
- Divisional Performance Measurement - ROI and RI Compared, Annuity Depreciation - ACCA (APM)
- Return on Investment (ROI) and Residual Income (RI) - ACCA Performance Management (PM)
What you will be able to do
- 2.3 Explain why divisional performance is measured in organisations.
Activity
Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: explain why divisional performance is measured in organisations.
Study materials
Videos
- CIMA P2 Divisional Performance Measurement - Divisionalised structures · YouTube · OpenTuition · 45 min · for registered students
- Divisional Performance Measurement - ROI and RI Compared, Annuity Depreciation - ACCA (APM) · YouTube · OpenTuition · 27 min · for registered students
- Return on Investment (ROI) and Residual Income (RI) - ACCA Performance Management (PM) · YouTube · OpenTuition · 25 min · for registered students
Further resources
- Managerial Accounting, ch. 11: How Do Managers Evaluate Performance in Decentralized Organizations? · PDF · Saylor Academy, textbook chapter; pp. 710–797 · for registered students
- Principles of Accounting, Volume 2: Managerial Accounting, ch. 12: Balanced Scorecard and Other Performance Measures · PDF · OpenStax, textbook chapter; pp. 565–604 · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
