According to Four-Drive Theory, Organizations Maximize Motivation by Focusing Employees

question 237

True/False

According to four-drive theory, organizations maximize motivation by focusing employees on opportunities to fulfill only one of the four drives.

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Definitions:

Direct Materials Quantity Variance

The variance between the real amount of direct materials consumed in manufacturing and the anticipated standard amount, multiplied by the predetermined cost for each unit.

Actual Quantity

The real or measured amount of inputs used in the production of goods or services, often compared against budgeted or standard quantities for analysis.

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.

Revenue Volume Variance

This reflects the difference between actual revenue and the expected revenue that was based on the budget, often attributed to changes in sales volume.