Solved

The Following Data Are Taken from the Management Accounting Reports

Question 130

Multiple Choice

The following data are taken from the management accounting reports of Dancer Co.:  Div. A  Div. B  Div. C  Operating income $3,600,000$3,700,000$2,700,000 Total service department charges 3,400,0002,100,0002,200,000\begin{array} { l r r r } & { \text { Div. A } } & \text { Div. B } &{ \text { Div. C } } \\\text { Operating income } & \$ 3,600,000 & \$ 3,700,000 & \$ 2,700,000 \\\text { Total service department charges } & 3,400,000 & 2,100,000 & 2,200,000\end{array} ? If an incentive bonus is paid to the manager who achieved the highest operating income before service department charges, it follows that:


A) division A's manager is given the bonus.
B) division B's manager is given the bonus.
C) division C's manager is given the bonus.
D) the managers of Divisions B and C divide the bonus.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions