Organizational Profitability System

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Performance Measurement

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Tags:

profit, measurement, branch profitability,

Overview

Many institutions find that organizational profitability measurement is a logical starting point for their total profitability measurement process. Because it measures performance in an organizational context, it is consistent with management’s view of the institution in units, such as branches or other profit centers. By assigning indirect costs to profit centers, organizational profitability measurement surpasses the institutional profitability reporting provided by the general ledger. A financial statement approach to reporting performance enables profit center managers to become aware of the profitability implications of their...

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