When Absorption Costing Is Used and Management Bonuses Are Related

question 284

Multiple Choice

When absorption costing is used and management bonuses are related to operating income, managers are more likely to

• A)decrease inventory levels.
• B)increase inventory levels.
• C)keep inventory levels consistent.
• D)steal from the company.

---

Definitions:

NCVIA

National Childhood Vaccine Injury Act, a law established in 1986 to reduce the potential financial liability of vaccine makers due to vaccine injury claims and to ensure a stable market supply of vaccines.

National Childhood Vaccine Injury Act

A federal law established in 1986 to reduce the potential financial liability of vaccine manufacturers due to vaccine injury claims and to ensure a stable market for vaccines.

Lot Numbers

Lot numbers are identification codes assigned to batches of products, enabling manufacturers to track and trace the production and distribution of their goods.

Adverse Events

Unintended and harmful occurrences associated with the use of a medical product or procedure, including side effects, complications, or other negative reactions.