Table of contents1.0 SUMMARY 12.0 INTRODUCTION 23.0 PERFORMANCE MEASURES 33.1 Performance measures for cost center management 33.2 Performance measures for profit center management 33.3 Performance measures for management of investment centers 44.0 CONCLUSION 55.0 COSTING SYSTEMS 65.1 Marginal/Variable Costing 65.2 Full or Absorption Costing 75.3 Activity Based Costing 86.0 REFERENCES 101.0 EXECUTIVE SUMMARYAs CFO of A large multinational company operating in 20 countries around the world, the task is to evaluate different ways of measuring the performance of an individual manager who has each been assigned responsibility for a portion of the portfolio. To do this, an audit was carried out in several different centers which played a major role in the way the company was run and managed on a daily basis. I looked at the different methods used to evaluate individual managers who were responsible for different parts of the portfolio and how their decisions affected the success of the organization in order to maximize profitability. To maximize profitability, it was very important to consider in such a diverse environment how best to organize and plan their activity and resources. After evaluating all the different performance measurement methods using the three approaches, it became clear that in such an environment, no one method is suitable for measuring performance and that a combination of approaches would be best suited depending on the operational and environmental context of the organization. Ministries have also been given the responsibility of evaluating the costs of products and services in order to make better decisions. In this case, we consider different costing systems and have examined the act...... middle of document ......eMeasurement7e.htm ?, (December 15, 2013) January 2013. Standard Cost Analysis and gaps. Available at: .http://accountingexplained.com/managerial/standard-costing/ [December 20, 2013]. Reece, RS & Cool, WR, Measuring Investment Center Performance. Available at:<(http://hbr.org/1978/05/measuring-investment-center-performance/ar/1>.[20 December 2013)Ottley, D., 2001. Measuring accounting performance: a review of its objective and its practice. Available at: [December 22, 2013].2001. Cost center and profit centers. Available at: [December 23, 2013]Cost allocation and activity-based costing systems. Available at:< http://www.pearsoned.ca/highered/divisions/virtual_tours/horngren/man_acc/Ch05ManAcc.pdf > [December 20 2013]