Most Accounting Measures of Divisional Performance Have a Common Limitation

question 75

Multiple Choice

Most accounting measures of divisional performance have a common limitation in that they

• A) have a short-term bias.
• B) are costly to implement.
• C) are difficult to interpret.
• D) have a long-term bias.

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Definitions:

Gallons

A unit of volume for liquid measure equal to four quarts, used in both the US customary and British imperial systems.

Cereal

Grain-based food typically eaten as breakfast, made from processed grains and often fortified with vitamins and minerals.

Secondary Effect

The indirect consequences or impacts of an action or policy that may not be immediately apparent.

Cocaine

A powerful and illegal stimulant drug derived from the leaves of the coca plant, which can cause significant health and legal issues.