BUS 630 Week 6 DQ 1 Evaluating Performance

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.

Using same accounting methods by various divisions is important for the company is there is even a bit of interdependency between the divisions.

1. ROI (return on Investments): Divisions should have similar policies and methods for the accounting purpose otherwise it is not possible to compare the divisions. Return will change with the accounting standards and hence they cannot be compared among themselves. For example, if...