4. Electron's management is considering implementing a bomus for the supervisors based on gross margin under absorption costing. What incentives will this create for the supervisors? Do you think this new bonus plan a good idea? Explain briefly Relative to the obvious alternative of using contribution margin (from variable costing), the absorption-costing based gross margin bas some pros and cons as a performance measure for Electron's supervisors. It takes into account both variable costs and fixed costs-costs that the supervisors _1 to control in the long-run-and therefore, it is a _2_complete measure than contribution margin which _3_fixed costs (and may cause the supervisors to pay less attention to fixed costs). The downside of using absorption-costing-based gross margin is the supervisor's temptation to use 4_levels to control the gross margin in particular , to share up a sagging gross margin by building up This can be offset by specifying, or limiting, the inventory build-up that can occur, charging the supervisor a carrying cost for holding inventory, and using_6_performance measures such as the ratio of ending to beginning inventory is able to 1. is 2. is more 3.is ignores 4.is inventory inventory 5.is as Scannedy 6. is aner financial