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:

Services Rendered

Work or services that have been provided or completed for a client or customer, usually culminating in a request for payment.