One disadvantage of using after-tax income as a performance measure of divisional results is that it is an absolute measure which makes it difficult to compare divisions of significantly different sizes

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After-tax income, being an absolute measure, does not account for the differences in size and resources of different divisions. Therefore, larger divisions may have an advantage in terms of higher income solely due to their size, which makes it difficult to compare the performance of divisions of significantly different sizes using this measure.

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