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The controller of Fifties, a chain of drive-in restaurants, is considering modifying the monthly income statements by charging all costs relating to operations of the

The controller of Fifties, a chain of drive-in restaurants, is considering modifying the monthly income statements by charging all costs relating to operations of the corporate headquarters to the individual restaurants in proportion to each restaurant's gross revenue.

  • Do you think that this would increase the usefulness of the responsibility income statement in evaluating the performance of the restaurants or the restaurant managers? Explain.

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