The Following Data Are Taken from the Management Accounting Reports

question 47

Multiple Choice

The following data are taken from the management accounting reports of Dancer Co.: $$\begin{array} { l r r r } & \text { Div. A } & \text { Div. B } & \text { Div. C } \\\text { Operating income } & \$ 1,800,000 & \$ 1,350,000 & \$ 1,900,000 \\\text { Total service department charges } & 1,700,000 & 1,050,000 & 1,100,000\end{array}$$ ? 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.

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Definitions:

Best Performers

Individuals or entities that achieve the highest level of success or efficiency in their respective areas or activities.

Trusted Relationships

Bonds characterized by trust, integrity, and confidence between parties, often foundational in both personal and professional contexts.

In-Group

A social group to which a person psychologically identifies as being a member, usually distinguished by certain shared characteristics or beliefs.

Participative Leadership

A leadership style that involves all members of a team in identifying goals and developing strategies to achieve them.