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Find decreasing inventory levels by producing less

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Reference no: EM132509736

Question1 : If a manager's bonus is tied to operating income, then decreasing inventory levels by producing less compared to last year would result in:

a. a decrease to the manager's bonus under absorption costing but not under variable costing.

b. a decrease to the manager's bonus under variable costing but not under absorption costing.

c. an increase to the manager's bonus under absorption costing but not under variable costing.

d. no effect on the manager's bonus.

e. an increase to the manager's bonus under variable costing but not under absorption costing.

Reference no: EM132509736

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