Wednesday, February 20, 2013

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

ACCOUNTING

Multiple Choice

Does operating income best measure a subunit's financial performance? This question is considered 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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