In a decentralized company in which the divisions are organized as investment centers, how could a dicision be considered the least profitable even though it earned the largest amount of income from operations?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 5DQ: In a decentralized company in which the divisions are organized as investment centers, how could a...
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In a decentralized company in which the divisions are organized as investment centers, how could a dicision be considered the least profitable even though it earned the largest amount of income from operations?

 

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