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Situation for determining performance evaluations

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Reference no: EM13760688

Post 1

  • Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is used both to increase income and to influence performance measures in use.
  • evaluate the benefits of variable costing in eliminating opportunities for adverse incentives that absorption costing can create, indicating how a company may leverage these benefits.

Post 2 

  • Justify the use of practical capacity over theoretical capacity in product costing in a manufacturing company with consistent excess capacity.
  • Determine the influence fixed costs of capacity has on pricing decisions and customer response.

Reference no: EM13760688

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Situation for determining performance evaluations : Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is used both to increase income and to influence performance measures in use.
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