We have 15 subsidiaries. All corporate costs are allocated to the subsidiaries. In evaluating the profitability of

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We have 15 subsidiaries. All corporate costs are allocated to the subsidiaries. In evaluating the profitability of our French subsidiary, we find it generates a net loss.

Why might this number not be a good indicator of the profit contribution that this subsidiary makes to the corporation as a whole?

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Managerial Accounting

ISBN: 9780538842822

9th Edition

Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson

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Question Posted: Jun 04, 2024 02:02 AM

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We have 15 subsidiaries. All corporate costs are allocated to the subsidiaries. In evaluating the profitability of

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Managerial Accounting

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