Multiple Choice
Under variable costing, if a manager's bonus is tied to operating income, then increasing inventory levels compared to last year would result in ________.
A) increasing the manager's bonus
B) decreasing the manager's bonus
C) not affecting the manager's bonus
D) being unable to determine the manager's bonus using only the above information
Correct Answer:
Verified
Correct Answer:
Verified
Q200: Explain how using master-budget capacity utilization for
Q201: _ is based on the level of
Q202: In variable costing, all nonmanufacturing costs are
Q203: If activity based cost accounting is used
Q204: Absorption costing helps managers to artificially inflate
Q206: If the variable manufacturing overhead is $50
Q207: Which of the following is true of
Q208: To reduce the undesirable incentives to build
Q209: Absorption costing enables managers to increase operating
Q210: For benchmarking purposes for long-range planning, it