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    The differences between divisional profits

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    When comparing various divisions within a company, describe what problems can arise from evaluating divisions that have different accounting methods, as described in Chapter 11 of your text. Cite three examples of accounting methods that could cause divisions' profits to differ. Your initial post should be 200-250 words.

    Guided Response:
    Review several of your classmates' postings. Respond to at least two of your classmates and provide recommendations that extend their thinking and may inspire reconsideration of their examples.

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    Solution Preview

    Comparing various divisions within a company may lead to several issues which include:
    1. The task or purpose of the divisions you are comparing may be different, which makes the comparison unrealistic. For example, one division could be a profit center while the other one is a cost center. Think comparing the accounting division and the production ...

    Solution Summary

    This solution provides a discussion on how divisional profits differ.