The use of variable costing to determine managers' bonuses does not give the incentive to produce more products than needed.

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Variable costing only considers the direct variable costs of production, such as direct materials, direct labor, and variable overhead. Fixed costs, such as salaries and rent, are not included in the cost of goods sold under variable costing. Therefore, using variable costing to determine managers' bonuses would incentivize them to focus on increasing production efficiency and minimizing variable costs, rather than producing more products than needed, as excess production would result in higher fixed costs and lower profits overall.

The Use of Variable Costing to Determine Managers' Bonuses Does