The higher and accurate budgeted profit forecast of managers lead to __________?
Correct answer: D. high incentive bonus
- A. revenue bonus
- B. low incentive bonus
- C. influence bonus
- D. high incentive bonus
Explanation
When managers produce a higher and reliable profit forecast, the resulting performance target can support a larger performance-based incentive bonus. The other options are not standard consequences of this budgeting relationship.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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