For what purpose is controllable margin most useful?

Question

Quizplus · Accepted Answer

Controllable margin is most useful for the performance evaluation of profit centres. It measures the contribution of a profit centre to the overall profitability of the organization by calculating the profit generated after deducting all controllable expenses. This allows for a comparison of different profit centres within the organization and helps in identifying areas of improvement. Controllable margin is not typically used for preparing master budgets, break-even analysis, or evaluating cost centres.

For What Purpose Is Controllable Margin Most Useful