A company prepares the master budget by taking each division manager's estimate of revenues and costs for

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A company prepares the master budget by taking each division manager's estimate of revenues and costs for the coming period and entering the data into the budget without adjustment. At the end of the year, division manag- ers are given a bonus if their division profit is greater than the budget. Do you see any problems with this system?

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Cost Accounting

ISBN: 9780256069198

3rd Edition

Authors: Edward B. Deakin, Michael Maher

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