Responsibility centers and reporting segments
Free IMA CMA Part 1 (Financial Planning, Performance, and Analytics) lesson in Performance Management. 18 min read, ~2,733 words.
Four responsibility centers: cost (inputs only), revenue (sales only), profit (revenues minus controllable costs), investment (profit plus assets used); ROI, RI, and EVA apply only to investment centers. Contribution margin = sales minus variable costs; segment margin = contribution margin minus traceable fixed costs (the right number for keep-or-drop). Organizations...
Read the full lesson, free →
Worked examples and practice. Free with a free account, no card.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 1C2
Browse all free CMA Part 1 lessons or jump into free CMA Part 1 practice questions.