The president of Toys for Boys evaluates the performance of Annie and Andy, the divisional managers, on

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The president of Toys for Boys evaluates the performance of Annie and Andy, the divisional managers, on the basis of a variety of net income measures. Drew, the controller, informs the president that such measures could be misleading. What are the major concerns in defining the "income" measures? Are internal or external measures more susceptible to manipulation? Explain.

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Cost Accounting Foundations and Evolutions

ISBN: 978-1111626822

8th Edition

Authors: Michael R. Kinney, Cecily A. Raiborn

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