Vroom's Expectancy Theory Contends That Prior to Committing Maximum Effort

question 57

True/False

Vroom's expectancy theory contends that prior to committing maximum effort to a task, employees want to know if they can accomplish the task and if it will equally reward everyone at work, even if others were not involved in the accomplishment of the task.

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Definitions:

Break-even Point

The level of sales or production at which total revenues equal total costs, resulting in neither profit nor loss.

Contribution Margin

The selling price of a product minus the variable cost per unit, used to cover fixed costs and contribute to net profit.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a short time.

Variable Costs

Expenses which are dependent on the volume of activity within a business.