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) Financial accounting income at the divisional level is computed differently from that of the income for the firm.

Question

Quizplus · Accepted Answer

This option states a disadvantage of after-tax income as a performance measure, rather than an advantage. The other options (A, B, and C) are all advantages of using after-tax income as a performance measure.

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