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.

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Definitions:

Stimulus Generalization

the tendency for the conditioned response to be elicited by stimuli that are similar but not identical to the conditioned stimulus.

Conditioned Inhibition

The permanent inhibition of a specific behavior as a result of the continued failure of that response to reduce the drive state; alternatively, a stimulus (CS2) may develop the ability to suppress the response to another stimulus (CS1) when the CS1 is paired with a UCS and the CS2 is presented without UCS.

Excitatory Strength

The level of potential or ability of a stimulus to produce a response or a desired behavioral effect.

Drive State

A psychological state that motivates an organism to satisfy a physiological need, such as hunger or thirst.