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Divisional Performance

Learn about divisional structures and how to evaluate their performance.

  • Duration

    2 weeks
  • Weekly study

    8 hours

Most large companies are comprised of divisionalised structures, with the performance of each sector contributing to achieving its strategic goals.

Both financial and operational measures are important to business objectives. This course aims to introduce the different types of divisionalisation and the various methods of measuring performance.

You will learn how to evaluate and compare the performance of different divisions of a business, as well as design financial and operational performance measures.

What topics will you cover?

  • Introduction and evaluation of centralisation and decentralisation
  • Calculate, compare and contrast a division’s return on investment and residual income
  • Introduction to the concept of transfer pricing
  • Calculation of transfer prices
  • The limitations of division performance measures

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

What will you achieve?

By the end of the course, you‘ll be able to...

  • Describe the different bases of divisionalisation
  • Identify the differences between types of responsibility centres
  • Evaluate the use of different types of profit to measure performance
  • Discuss and critically analyse the limitations of divisional performance measures

Who is the course for?

This course would suit anyone looking for additional basic accounting skills. These are skills that can help you make better decisions and advance in your career. It may be of particular interest to people in senior management and leadership roles, who lack an accounting background.

Please note that the staff described in the ‘Who will you learn with?’ section below may be subject to change.

Who will you learn with?

Winfred is a lecturer in Accounting at Coventry University. He presently teaches on various accounting modules and his research interests are in ownership structure developments in emerging markets.

Who developed the course?

Coventry University

Coventry secured 5 QS Stars for Teaching and Online Learning in the QS World University Ranking 2020 and has received No. 1 in the world for Massive Open Online Courses in MoocLab’s World University Ranking 2021.

  • Established

  • Location


Learning on FutureLearn

Your learning, your rules

  • Courses are split into weeks, activities, and steps to help you keep track of your learning
  • Learn through a mix of bite-sized videos, long- and short-form articles, audio, and practical activities
  • Stay motivated by using the Progress page to keep track of your step completion and assessment scores

Join a global classroom

  • Experience the power of social learning, and get inspired by an international network of learners
  • Share ideas with your peers and course educators on every step of the course
  • Join the conversation by reading, @ing, liking, bookmarking, and replying to comments from others

Map your progress

  • As you work through the course, use notifications and the Progress page to guide your learning
  • Whenever you’re ready, mark each step as complete, you’re in control

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Join the conversation on social media

You can use the hashtag #divisionalperformance to talk about this course on social media.