Question: The controller of Fifties a chain of drive in restaurants is

The controller of Fifties, a chain of drive-in restaurants, is considering modifying the monthly income statements by charging all costs relating to operations of the corporate headquarters to the individual restaurants in proportion to each restaurant’s gross revenue. Do you think that this would increase the usefulness of the responsibility income statement in evaluating the performance of the restaurants or the restaurant managers? Explain.

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  • CreatedApril 17, 2014
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