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    Introduction to Management Accounting Study Set 2
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    Exam 10: Management Control in Decentralized Organizations
  5. Question
    When a Company Measures Performance Using Economic Profit, Managers Tend
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When a Company Measures Performance Using Economic Profit, Managers Tend

Question 107

Question 107

True/False

When a company measures performance using economic profit, managers tend to invest in any project earning more than the cost of capital and, thus, raise the firm's total profits.

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