Page 8 - PowerPoint Presentation
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OPERATING SEGMENTS
Chief operating decision maker
• Any company or group of companies must be managed by a
person or persons to achieve the ultimate goals of the
company, which are to realise profits or increase the net
asset value of the company.
• This is normally a director (CEO or CFO) or a group of
directors (executive directors) but can also be a manager or
managers. This person or persons are referred to as the
"chief operating decision maker".
• This term therefore refers to a function rather than a
person.
• Generally, management reports are created internally (e.g.
board packs) at regular intervals and serve as tools for
evaluating operating segment performance and deciding
how to allocate resources to operating segments.
• These reports are evaluated by the chief operating decision
maker.
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