Normally, we exclude interest and taxes from the calculation of an investment center's profit results from its operations because profit center managers usually do not influence financial or tax-related decisions.
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Q12: Decentralization worsens the problem of divergence between
Q13: Managers of investment centers enjoy little autonomy
Q14: Net book value is the original acquisition
Q15: Cost center managers are charged with minimizing
Q16: Residual income represents the additional profit or
Q18: Production managers have little control over the
Q19: A characteristic of an effective performance measure
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Q21: A common approach to setting transfer prices
Q22: When intra-company transfers occur, a legally recognized
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