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Q. Evaluating the performance of divisions?

The controllability principle is concerned with assessing performance based upon measures that can be controlled only by a manager and omitting any items which are uncontrollable. As an example the head office or holding company could ensure it does not include and therefore evaluate a manager on the head office overhead they apportion or interest charges they apply centrally.

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Strategic Management, Management Studies

Category:- Strategic Management
Reference No.:- M9576452

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