Business, 20.03.2020 10:06 lijeehowe

If a manager’s bonus is tied to operating income, then decreasing inventory levels by producing less compared to last year would result in: no effect on the manager’s bonus. an increase to the manager’s bonus under variable costing but not under absorption costing. a decrease to the manager’s bonus under variable costing but not under absorption costing. a decrease to the manager’s bonus under absorption costing but not under variable costing. an increase to the manager’s bonus under absorption costing but not under variable costing.

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