one of the disadvantage of the accounting based bonus scheme is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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an equipment has a cost of $150,000. the replacement cost is $200,000. the equipment has 8 years useful life and no salvage value and the firm used straight line depreciation. the realized profit should recognized when use current cost accounting is:
a.
$6,250
b.
$43,750
c.
$50,000
d.
$25,000
one of the disadvantage of the accounting based bonus scheme is:
a.
link the performance of management with the market share price
b.
keep financial information objectivity
c.
short-term oriented
d.
links the management performance with the cost of capital
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