Motivations to Smooth Net Income Over Time Include Each of the Following

question 3

Multiple Choice

Motivations to smooth net income over time include each of the following except:

• A) Maximize bonuses and stock option values
• B) Steady increase in earnings each year
• C) Minimize overall taxes
• D) Make it appear managers are doing better than they really are

---

Definitions:

Just-In-Time Practices

Manufacturing and inventory strategy where materials and products are produced or acquired only as needed for use, reducing waste and inefficiencies.

Railroads

Transportation systems comprising tracks, trains, and supporting infrastructure that serve as a method for moving goods and people over long distances.

Postponement

The delay of any modifications or customization to a product as long as possible in the production process.

Accumulation

The process of gradually gathering or increasing amounts of something over time.