Assume the Same Facts as in Question 142, Except That

question 53

Multiple Choice

Assume the same facts as in question 142, except that $2 million in earned travel awards on ALA expired during 2009. What is the expense that ALA should report for its frequent flyer program in its 2009 income statement?

• A)$38 million
• B)$40 million
• C)$42 million
• D)None of these is correct.This is 80% of the $50 million cost of free travel awards earned.

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Definitions:

Financial Incentives

Monetary rewards designed to motivate individuals or groups to perform certain actions or achieve targets.

Self-Motivated

The quality of being driven to do or achieve something because of one's own enthusiasm or interest, without needing pressure from others.

McClelland's Model

A theory of motivation that emphasizes three primary needs influencing human motivation: the need for achievement, the need for affiliation, and the need for power.

Hygiene Factors

Elements of a job that do not increase job satisfaction but, when absent, can lead to dissatisfaction, according to Herzberg's two-factor theory.