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The materiality concept plays a central role in financial and managerial accounting. As a manager of a service company consider the following issues.

1. How do you define materiality concept

2. Identify at least two sources of GAAP influence accountants' decision making with respect to performance measurements.

3. Discuss the relationship between the predetermined level of materiality and divisions performance.

4. Discuss how the use of different methods of performance measurements may influence the materiality applications in evaluating division's performance.

Include all references in all the arguments and discussion 1, 2, 3, and 4.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M944401

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