Most accounting measures of divisional performance have a common limitation in that they
A) have a short-term bias.
B) are costly to implement.
C) are difficult to interpret.
D) have a long-term bias.

Question

Quizplus · Accepted Answer

Most accounting measures of divisional performance are based on short-term financial results, such as profit margins or return on investment. This myopic view may limit a company's ability to achieve long-term goals or invest in future growth opportunities.

Most Accounting Measures of Divisional Performance Have a Common Limitation