One advantage of using after-tax income as a performance measure of divisional results is that it is a financial accounting measure that can also be used to compute organizational income.

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After-tax income is a financial accounting measure that reflects the amount of income earned by a division after accounting for all taxes. Because it can also be used to calculate the overall organizational income, it provides a standardized metric for comparison across different divisions. This makes it easier to evaluate the performance of different divisions and to assess the overall financial health of the organization.

One Advantage of Using After-Tax Income as a Performance Measure