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Question(s) / Instruction(s):

 

197.          "Decentralization has benefits and costs." Name three of each.

 


198.     "Both ROI and residual income use profit and invested capital to measure performance.
     Therefore, it really doesn't matter which we use." Do you agree? Explain.

 

199.     Give four possible definitions of invested capital that can be used in measuring ROI or
     residual income.



200.     "Managers who use a historical-cost accounting system look backward at what
     something cost yesterday, instead of forward to what it will cost tomorrow." Do you     agree? Why?

 


201.     How does the presence or absence of idle capacity affect the optimal transfer-pricing policy?

 


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