Which of the following is not an implication of having floors and ceilings for a bonus plan that is based on a profit measure?
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a. |
When a company is approaching its payout floor, managers will pull in revenue from a future period and push off expenses to a future period |
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b. |
When a company is approaching its payout cap, managers will push off revenue to a future period. |
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c. |
When a company has significantly surpassed its payout cap, managers will push off expenses to a future period. |
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d. |
When managers realize that they will not attain the payout floor, they will push off revenue to a future period and pull in expenses from a future period. |
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