Business Finance
When evaluating performance many organizations compare current results with the

Question Description

I’m trying to study for my Accounting course and I need some help to understand this question.

.... actual results of previous accounting periods. Is an organization that follows this approach likely to encounter any problems? Explain in detail please.

Review: http://www.cimaglobal.com/Thought-leadership/Newsl...

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Final Answer

Yes there will be a problem because whatever production was in previous year, not necessarily be in current year. The number of workers who worked or budget fixed May not match with current year. In order to compare output, input should be same. 

whgrab (11482)
Duke University

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