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Answer (C) is correct . Because the production manager wishes to maximize her bonus for the coming year, the action she must take will necessarily have most of its effect in the short run. The action she should take to achieve this goal is to defer costs under her control until the following period.

Answer (A) is incorrect because The perverse incentive to “produce for inventory” only works under absorption costing.
Answer (B) is incorrect because The production manager has no control over advertising and marketing costs.
Answer (D) is incorrect because Activity-based costing and activity-based management require time, effort, and resources in the short run and only show benefits over the long run.