One Disadvantage of Using After-Tax Income as a Performance Measure

question 61

True/False

One disadvantage of using after-tax income as a performance measure of divisional results is that it is an absolute measure which makes it difficult to compare divisions of significantly different sizes.

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Definitions:

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone. It is the highest level of Maslow's hierarchy of needs.

Gestalt Therapist

A psychotherapist specializing in Gestalt therapy, a form of psychotherapy emphasizing personal responsibility and focusing on the present moment in the context of an individual's environment and social relationships.

Undesirable Behaviors

Actions or habits that are considered negative or socially unacceptable, often leading to negative outcomes.

Feelings

Subjective experiences of emotion, often described as personal emotional states or reactions.