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Essay on how best to Measure Individual Managers Performance

Assignment id 1016561
Discipline Other
Assignment type Essay
Words 3243
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Table of Contents 1.0 EXECUTIVE SUMMARY 1 2.0 INTRODUCTION 2 3.0 Overall performance MEASURES 3 3.1 Functionality measures for Cost Center Management 3 3.2 Efficiency measures for Profit Center Management 3 3.3 Efficiency measures for Investment Center Management 4 4.0 Bottom line 5 5.0 COSTING SYSTEMS 6 5.1 Marginal/ Adjustable Costing 6 5.2 Total or Absorption costing 7 5.3 Activity Structured Costing 8 6.0 REFERENCES 10 1.0 EXECUTIVE Overview As Financial Director for a huge multinational company working its business in 20 countries all over the world the duty of assessing various ways to gauge the performance of individual supervisor who each provides responsibly for one portion of the portfolio was assigned. To get this done an audit was completed at a number of different centres that played a significant role in the way the organization was run and handled every day. I looked at the various strategies used of evaluating the average person managers who were accountable for various areas of the portfolio and how their decisions affected the achievement of the organisation to be able to maximise profitability. To increase profitability it had been very vital that you consider in that varied environment the simplest way to organize and program their activity and assets. After evaluation of most the various ways of measuring functionality using the three methods it was obviously noticed that in such environment nobody way is ideal for measuring efficiency and a mixture of approaches will be best suited based on the operational and environmental environment of the organisation. The departments were also given the responsiblity for costing services and products in order to make better decisions. In this complete case we consider different costing systems and viewed act...

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