The following data are taken from the management accounting reports of Dulcimer Co.: 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

Question

The following data are taken from the management accounting reports of Dulcimer Co.:  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

Quizplus · Accepted Answer

Division A had the highest income from operations before service department charges, therefore its manager would receive the incentive bonus.

The Following Data Are Taken from the Management Accounting Reports