Refer to the preceding problem. 1. Suppose the decision model favored by top management consisted of a

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Refer to the preceding problem.

1. Suppose the “decision model” favored by top management consisted of a comparison of a 3-year accumulation of cash under each alternative. As the manager of office operations, which alternative would you choose? Why?

2. Suppose the “performance evaluation model” emphasized the minimization of overall costs of photocopying operations for the first year. Which alternative would you choose?

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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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