Which of the following attitudes and actions is most likely to help decision-makers develop an efficient approach to taxation?
A)Cash flows should be considered from a before-tax perspective when making decisions.
B)Functional managers should not be held responsible for the tax effects of decisions within their divisions.
C)Tax costs to a business should be regarded as controllable expenses, much like product costs and selling costs.
D)All managers should own a copy of the Income Tax Act.

Question

Quizplus · Accepted Answer

Considering tax costs as controllable expenses will encourage decision-makers to seek more efficient ways of managing taxes, ultimately leading to an efficient approach to taxation. Option A is incorrect because decision-makers need to consider tax implications when making decisions. Option B is incorrect because functional managers should be held responsible for the tax effects of decisions within their divisions. Option D is not necessarily relevant as owning the Income Tax Act does not necessarily lead to an efficient approach to taxation.

Which of the Following Attitudes and Actions Is Most Likely