Most accounting measures of divisional performance focus on long-term benefits and minimize the possibility of a short-term bias.

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Most accounting measures of divisional performance focus on short-term benefits such as profit margins, return on investment, and earnings per share, which can create a short-term bias. While some of these measures also consider long-term benefits like market share growth and customer satisfaction, they are primarily geared towards assessing short-term financial performance.

Most Accounting Measures of Divisional Performance Focus on Long-Term Benefits