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.