Bhimani, Horngren,
Datar and Rajan,
Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012 This exercise illustrates the dysfunctional behaviour that could be motivated by arbitrary allocations of corporate overhead to profit-conscious divisional managers.
1 Without the €800,000 in sales from the low-margin product
line in the Tampere Division, the second quarter operating statements (in thousands) will be
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