Question: a) Spiro Division is part of a vertically integrated group of divisions allocated in one country. All divisions sell externally and also transfer goods to

a) Spiro Division is part of a vertically integrated group of divisions allocated in one country. All divisions sell externally and also transfer goods to other divisions within the group.
Spiro Division performance is measured using profit before tax as a performance measure.
(i) The degree of autonomy which is allowed to divisions may affect the absolute value of profit reported. Discuss the statement in relation to Spiro Division.

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