Which of the following is not an advantage of after-tax income as a performance measure?
A) It reflects the results of decisions under the division manager's control.
B) It summarizes the results of decisions affecting revenues and costs.
C) It makes comparison of divisions easy because they use the same measure, dollars of income.
D) It is financial income computed differently from the income of the firm.

Question

Quizplus · Accepted Answer

After-tax income is typically computed in a consistent manner across the firm, so it does not differ from the income of the firm.

Which of the Following Is Not an Advantage of After-Tax