Linda Butler is the new division controller of the snack-foods division of Daniel Foods. Daniel Foods has reported a minimum 15% growth in annual earnings for each of the past 5 years. The snack-foods division has reported annual earnings growth of more than 20% each year in this same period. During the current year, the economy went into a recession. The corporate controller estimates a 10% annual earnings growth rate for Daniel Foods this year. One month before the December 31 fiscal year-end of the current year, Butler estimates the snack-foods division will report an annual earnings growth of only 8%. Rex Ray, the snack-foods division president, is not happy, but he notes that the "end-of-year actions" still need to be taken. Butler makes some inquiries and is able to compile the following list of end-of-year actions that were more or less accepted by the previous division controller:

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(Click the icon to view the end-of-year actions.)Read the requirements

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Requirement 1. Why might the snack-foods division president want to take these end-of-year actions?

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Daniel Foods may have a division bonus scheme based on one-year reported division earnings. Efforts to

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or transfer

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can increase this bonus.

Blank 1 choices (COMPLIANCE WITH GAAP) (MANAGEMENT INCENTIVES) (PROMOTION OPPORTUNITTY AND JOB SECURITY) (RETAIN DIVISION AUTONOMY)

Blank 2 choices (FRONT- END COST INTO THE CURRENT YEAR) (FRONT-END REVENUE INTO THE CURRENT YEAR) (PUSH REVENUES INTO THE NEXT YEAR)

Blank 3 choices (COSTS INTO THE CURRENT YEAR) (COSTS INTO THE NEXT YEAR) (REVENUES INTO THE NEXT YEAR)

Their are 3 blanks with choices. The choices are in parenthses for each blank. You have to choose 1 parenthses for each black.