A problem with ratio-based measures is that managers can make decisions that improve divisional income but lower organizational performance.
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Q12: One problem with economic value added (EVA)
Q13: Divisional income statements do not have to
Q14: The use of residual income reduces, but
Q15: Managerial myopia is the distortion in incentives
Q16: In general, it is better to have
Q18: Economic value added (EVA) adjustments are made
Q19: Residual income is the difference between the
Q20: In general, a division's investment base includes
Q21: The Maxim Corporation reported the following
Q22: Which of the following statements does not
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