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Which of the following is not a problem associated with residual income?
Bluffinmuffin
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Which of the following is not a problem associated with residual income?
Which of the following is
not
a problem associated with residual income?
▸ It can change without any change in operations because of depreciation.
▸ It allows managers to manipulate the outcome.
▸ Using it to compare divisions of different sizes is difficult.
▸ It is an absolute measure that is stated in absolute dollars.
Textbook
Managerial Accounting
Edition:
4
th
Author:
Davis
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It can change without any change in operations because of depreciation.
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Bluffinmuffin
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Thanks
Kstan109
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Thanks for your help!!
rhockeygirl
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Brilliant
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