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Hats Produces Sun Visors

Question 12

Multiple Choice

Hats produces sun visors. Production data for the first month follow:
Hats produces sun visors. Production data for the first month follow:    -If employees receive a 3% salary bonus for keeping production costs per unit under $3.00, which method would result in a bonus?</para> A)  Variable costing B)  Absorption costing C)  Neither D)  Both would yield the same bonus.
-If employees receive a 3% salary bonus for keeping production costs per unit under $3.00, which method would result in a bonus?


A) Variable costing
B) Absorption costing
C) Neither
D) Both would yield the same bonus.

Correct Answer:

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