If a Division Manager's Compensation Is Based Upon the Division's

question 26

Multiple Choice

If a division manager's compensation is based upon the division's net income, the manager may decide to meet the net income targets by increasing production when using

• A)variable costing, in order to increase net income.
• B)variable costing, in order to decrease net income.
• C)absorption costing, in order to increase net income.
• D)absorption costing, in order to decrease net income.

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal expectations.

Expected Behavior

Actions or reactions that are anticipated in a given context based on societal norms, rules, or personal standards.

Great-person Theory

A theory of leadership that suggests history is shaped by the actions of great individuals who possess unique characteristics and talents.

Steve Jobs

Co-founder of Apple Inc., influential in the development of personal computers and innovative technology products like the iPod, iPhone, and iPad.