AQA Business Studies Unit 3 Thread - Thurs Jan 26th 2012

what is a profit centre?! help!

It's where local branches have delegation and responsibility of their own targets. It's good because it can help increase motivation as each employee strive to meet their targets, however it could result in competition between markets which obviously isn't something they want.

Yeah but I think when it goes into a calculation the negative is ignored? Or at least the division ones

The negative plays no part in ratios

It's where local branches have delegation and responsibility of their own targets. It's good because it can help increase motivation as each employee strive to meet their targets, however it could result in competition between markets which obviously isn't something they want.

Ain't it internal competition, not markets

1 and 2 is kinda the same step since you worked out net profit already so you should remove step number 2 but the rest is fine

You see with NPV will they give us the discount factor? and lay it out in the table?

NPV and payback come up in June 11, can we basically be guaranteed that we're going to get AVR?
or maybe AVR and payback?

Cheers. AQA made a mistake in the course companion then. They didnt subtract the intial investment, hence by the ARR was 54%. A lot higher then average.

Thats why I wrote step 1 and 2.

that's still right though.. in doing past paper questions i've had to do both methods.. sometimes you do need to subtract the initial investment (sometimes!)