What does Adjusted Controllable Profit (Adjust CP) account for in its calculation?

Adjusted Controllable Profit (Adjust CP) provides a more comprehensive measure of profitability by taking into account various expenses associated with running a business. The correct formulation of Adjusted CP highlights that it adds worker compensation and bonuses to the base figure of Controllable Profit (CP). This approach recognizes that these expenses are key elements of operational costs that should be included to provide a clearer picture of overall profitability.

By including worker compensation and bonuses, businesses can better assess the direct impact of labor costs and incentive structures on profitability, allowing for more accurate financial planning and performance evaluation. This ensures that leadership can make informed decisions based on a thorough understanding of all controllable expenses, rather than just relying on gross sales or other limited metrics.