Brett and Erin Are Accountants Working for XMP Corporation; Brett

question 2

Multiple Choice

Brett and Erin are accountants working for XMP Corporation; Brett is very interested in working his way up to being XMP's chief financial officer.He is confident that he can complete all his assigned tasks well before their established deadlines and control costs in his area.Which elements of expectancy theory are illustrated in that example?

• A)Expectancy and instrumentality
• B)Instrumentality and valence
• C)Expectancy and valence
• D)Expectancy, instrumentality and valence

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Definitions:

Combined Return On Investment

A measure assessing the total financial return of different investments or the aggregate performance of an entire investment portfolio.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.

Residual Income

The net income that exceeds the minimum required return on investment or capital; often used as a performance measure in managerial accounting.

Investment Opportunity

An option to allocate resources with the expectation of generating a return or profit in the future.