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Division with responsibility
The overall performance of an organization is established by evaluating how each division performs. To be effective, performance must be measured by comparing the controllable costs and revenues against targets. Costs and revenues that are noncontrollable must be separately identified for management reporting and control purposes.
Learn new topics to demonstrate proficiency in growing areas of demand
- Cost centers
- Performance reports
- Behavioral issuesUsing the right tools
The decentralization of an organization into responsibility centers, giving divisional managers autonomy over decision-making, can create many advantages for an organization. However, if the performance management tools used to control and measure performance are ineffective, it can lead to those managers behaving in a dysfunctional manner. The course exercises will give you the tools to determine the risk faced by internal constraints that affect the overall behavior strategy.
This is a standalone course but if you’re interested in more of this type of learning while earning a designation, explore the [CGMA® Finance Leadership Program]( https://www.cgma.org/becomeacgma).
CPE Credit: 1