Question: True or False: One problem associated with using accounting measures to evaluate divisional performance is the measures are based on historical information. True or False:

True or False: One problem associated with using accounting measures to evaluate divisional performance is the measures are based on historical information.

True or False: The use of residual income reduces, but does not eliminate, the suboptimization problem.

True or False: A problem with ratio-based measures is that managers can make decisions that improve divisional income but lower organizational performance.

True or False: Treating research and development costs as an expense rather than a long-term asset may reduce a manager's inclination to participate in research and development activities.

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