What Is a Key Implication of Expectancy Theory When Applied

question 70

Multiple Choice

What is a key implication of expectancy theory when applied to pay systems?

• A) Employees must get pay raises to cover increased living costs.
• B) Employees expect their managers to be competent.
• C) Employers expect their employees to be competent.
• D) Rewards must be valuable for motivation to occur.

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Definitions:

Indirect Expenses

Costs that are not directly attributable to the production of goods or services, such as utilities and rent.

Allocated

Refers to the distribution or assignment of costs or resources to different accounts, projects, or periods.

Cost of Goods Sold

The total direct costs attributable to the production of the goods sold by a company, including materials and labor.

Indirect Expenses

Costs not directly tied to a product or service, like utilities and rent.