Question

What do you mean by key result area in the context of controlling?

Answer 1

Key areas are those which have impact on whole organisation. For example, if there is increase in production cost by Rs 5, per unit and there is increase in postal cost by Rs 20, then more focus should be to find out reasons for increase in cost of production as it will affect the profit and future revenue of organisation whereas postal cost is incurred rarely and managers have no control over postal cost.