The Following Data Are Taken from the Management Accounting Reports

question 85

Multiple Choice

The following data are taken from the management accounting reports of Dancer Co.: $\begin{array}{llll}\underline{\text { Div. C }}&\underline{ \text { Div. B }} &\underline{ \text { Div. A} } & \\1,900,000 & \$1,350,000 & \$1,800,000 & \text { Income from operations } \\1,100,000 & 1,050,000 & 1,700,000 & \text { Total service department charges }\end{array}$ If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that

• A) division A's manager is given the bonus.
• B) division B's manager is given the bonus.
• C) division C's manager is given the bonus.
• D) the managers of Divisions B and C divide the bonus.

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Definitions:

Not Unreasonable Level

A phrase indicating that something is within a sensible or acceptable range or standard, often used to discuss expectations or outcomes.

Difficult Goals

Targets or objectives that are challenging to achieve due to their demanding nature or high standards.

Specific Goals

Clearly defined, measurable, and time-bound objectives that guide individual or organizational efforts and facilitate performance evaluation.

Goal Acceptance

The process in which individuals agree with and commit to achieving a specified goal, recognizing its value and relevance to their tasks or personal aspirations.