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The Question 'Does Operating Profit Best Measure a Subunit's Financial

Question 16

Multiple Choice

The question 'Does operating profit best measure a subunit's financial performance?' is considered to be part of which step in designing an accounting-based performance measure?


A) Choose performance measures that align with top management's financial goals.
B) Choose the time horizon of each performance measure.
C) Choose a definition for each performance measure.
D) Choose a measurement alternative for each performance measure.

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