Question

Variable Costing and Segment Reporting: Tools for Management. Search the Internet and provide a "recent" real world example of a company's use of any of the concepts discussed in the Chapter

Answer 1

The answer to the given question is below in form of an image :-

Also the following examples can be considered :-

It has been observed while going through annual reports of many diversified Indian Companies that they develop segment information or segmental analysis for their managerial planning and decision making. It has been found that some of the diversified companies are disclosing segment information in Director’s report on the performance of various divisions. These diversified companies are also disclosing segmental information on particulars with report to conservation of energy. It can be seen from various extracts taken from various annual reports of Indian Companies.

Segment Disclosures by Indian Companies

Segment Disclosure by Raymond Ltd.

Operating Divisions (Raymond Ltd.)

Performance of Divisions

Textile Divisions:

The textile division withstood severe all round competition through product innovation and vigorous sales promotion aided by its extensive distribution network. However the turnover of the division was lower due to overall fall in demand in the face.

Steel Division:

Output was up 45% and there was commensurate increase in sales overall growth in domestic demand was modest in the face of increased capacities coming on stream, leading to lower price realization exports were substantially higher.

Cement Division:

Production was up by 17% compared to the previous year. Margin were under pressure during greater part of the year in major markets due to ample supplies.

J.K. Toles and Tools Division

Operating Division (Grasim Industries Ltd.)

“The key business of the company viz., VSF and Cement together accounted for 76% of gross turnover in 1999-2000, Sponge iron and textiles accounted for 10% and 7% gross revenues respectively.”

Himachal Futuristic Communications Limited is the Flagship Company of HFCL Group. The largest private sector telecom focused group in India. It was promoted in 1987 by Mr. Mahendra Nahata, Mr. Viney Maloo and Dr. Deepak Malhotra jointly with the Himachal Pradesh State Electronics Development Corporation.