The Manager of Stone Company Is Given a Bonus Based

question 12

Multiple Choice

The manager of Stone Company is given a bonus based on income before income taxes. Net income after taxes is $11500 for FIFO and $10100 for LIFO. The tax rate is 30%. The bonus rate is 15%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?

• A) $63
• B) $2100
• C) $300
• D) $420

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Definitions:

Observational Learning

The acquisition or modification of a behavior after exposure to at least one performance of that behavior.

Operant Conditioning

A training technique that adjusts the potency of a conduct via positive reinforcement or disciplinary measures.

Classical Conditioning

A type of learned response in which a neutral object comes to elicit a response when it is associated with a stimulus that already produces a response.

Long-term Potentiation

A long-lasting enhancement in signal transmission between two neurons that results from their synchronous stimulation.