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  3. Study Set
    Managerial Accounting
  4. Exam
    Exam 9: How Are Operating Budgets Created
  5. Question
    Sales Personnel Who Are Paid a Bonus for Exceeding Budgeted
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Sales Personnel Who Are Paid a Bonus for Exceeding Budgeted

Question 12

Question 12

True/False

Sales personnel who are paid a bonus for exceeding budgeted sales have an incentive to underestimate sales when establishing the sales budget.

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