Which of the following attitudes and actions will 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 explore ways to minimize these costs and develop an efficient approach to taxation. A before-tax perspective may not provide a complete picture of the financial impact of a decision, while not holding functional managers responsible for tax effects may lead to a lack of accountability. While it can be helpful for managers to have access to the Income Tax Act, it is not necessarily required for developing an efficient approach to taxation.

Which of the Following Attitudes and Actions Will Help Decision-Makers