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Discuss the Disadvantages Associated with the Forced Distribution Method of Ranking

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Discuss the disadvantages associated with the forced distribution method of ranking.


Definitions:

Hedged Item

An asset, liability, firm commitment, or anticipated transaction identified by an entity to manage risks through hedging activities.

Cash Flow Hedge

A form of hedge accounting that aims to offset exposures to variability in cash flows, attributable to a particular risk associated with a recognized asset or liability.

Forward Contract

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the time of the contract.

Net Method

is an accounting method for recording purchases where the purchase is recorded at net of any trade discounts received.

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