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    Cost Accounting
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    Exam 23: Performance Measurement, Compensation, and Multinational Considerations
  5. Question
    A Major Weakness of Comparing Two Companies Using Only Operating
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A Major Weakness of Comparing Two Companies Using Only Operating

Question 106

Question 106

True/False

A major weakness of comparing two companies using only operating incomes as the basis of comparison is that it ignores the differences in the size of the investment and therefore any concept of yield or return on investment.

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