Which Decision Will Involve No Incremental Revenues

question 6

Multiple Choice

Which decision will involve no incremental revenues?

• A) Make or buy decision
• B) Drop a product line
• C) Accept a special order
• D) Additional processing decision

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Definitions:

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth needs, suggesting that individuals are motivated to fulfill these needs in a hierarchical order.

Clayton Alderfer

A psychologist known for developing ERG theory, which categorizes human needs into existence, relatedness, and growth categories.

Prepotent Levels

Dominant or primary stages in a hierarchy of needs or motivations, often compelling an individual to act to fulfill them before addressing less critical needs.

Equity Theory

A theory of motivation that suggests employees are motivated to achieve equity or fairness in the workplace, particularly in relation to others.