Contribution Margin Reporting and Analysis Is Appropriate Only for Manufacturing

question 64

True/False

Contribution margin reporting and analysis is appropriate only for manufacturing firms,not for service firms.

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Definitions:

Optimal Level

The most favorable, effective, or desirable degree or quantity of something for achieving a specific outcome.

Individualizing Rewards

Tailoring reward systems to meet the specific needs, desires, or achievements of individual employees.

Expectancy Theory Component

Refers to elements of the expectancy theory of motivation, which suggests that individuals are motivated to act in a certain way based on their expectation that the act will be followed by a desired outcome.

Valences of Outcomes

Valences of outcomes refer to the desirability of the results of actions, which can either be positive, attracting a person towards a behavior, or negative, deterring them from it.