Shirking Is Most Likely to Occur When

question 2

Multiple Choice

Shirking is most likely to occur when

• A)the principal monitors the agents extensively.
• B)employees are paid an hourly wage.
• C)a piece rate contract is used.
• D)an assembly line is used for production.

Recognize the valuation techniques prescribed by AASB 13.

Identify and differentiate between Level 1, 2, and 3 inputs.

Understand the principles guiding the determination of the fair value.

Know the definition of the principal market and its significance in fair value measurement.

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Definitions:

Pay

Compensation given to employees in exchange for their labor or services, often in the form of wages or salaries.

Perceptions of Rewards

Perceptions of rewards involve how individuals interpret and value the incentives and benefits they receive from their work or actions.

Expectancy Theory

A motivation theory suggesting that individuals are motivated to act in certain ways based on their expectations of outcomes and their valuations of those outcomes.

Valence

Is the value a person assigns to work‐related outcomes.