What is one of the ways that accounting is used to direct and control the manager of a corporation?
A) Threatening to tell shareholders a mangers income if a manager makes a 'poor financial' decision.
B) Linking of a mangers performance to a bonus that depends on accounting profit.
C) Making decisions based on the accounting information regardless of managerial input.
D) Using income smoothing to assure a manager that they can invest in a low risk investment.
Correct Answer:
Verified
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