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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

Managerial Accounting

Edition: 4^th

Author: Davis

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