transfer priees and responsibility aeeounting Retum to the setting of Table 23.3. When T = 0, the

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transfer priees and responsibility aeeounting Retum to the setting of Table 23.3. When T = 0, the optimal pay-forpedormance arrangement bases the division A manager's evaluation on the ineome of both divisions. Carefully explain, linking this phenomenon to responsibility accounting.

Continuing, notice that when T = lOO, the optimal pay-for-pedormance arrangement eonfines the division A manager' s evaluation to the ineome of division A. Carefully explain.

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