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key flaw in utilizing income from operations as a performance indicator for investment centers

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4DQ: What is the major shortcoming of using operating income as a performance measure for investment...

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Please explain a major shortcoming of using income from operations as a performance measure for investment centers.
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