The materiality concept plays a central role in financial and managerial accounting. A s a manager of a service company consider the following issues.

1 How do you define materiality concept.

2 Identify at least two source s of GAAP influence accountants ' decision making with respect to performance measurements .

3 Discuss the rel ationship between the predetermined level of materiality and divisions ' performance.

4 Discuss how the use of different methods of performance measurements may influence the materiality applications in evaluating divisions ' performance.

Include all references in all t he arguments and discussion in 1, 2, 3, and 4.