To Make Successful Use of the Equity Theory,managers Must Remember

question 183

Multiple Choice

To make successful use of the equity theory,managers must remember that

• A) over rewarded employees perform best.
• B) under rewarded employees perform best.
• C) for rewards to motivate employees,employees must perceive them as being fair.
• D) employees must consider their inputs equal to the inputs of their comparison other.
• E) employees must consider their outcomes equal to the outcomes of their comparison other.

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Definitions:

Costs Incurred

Expenses recognized in accounting, representing the cost of doing business and acquiring or producing goods.

Contract Price

The agreed-upon price for goods or services specified in a contractual agreement.

Installment Sales Method

Accounting method that recognizes revenue when payments are received rather than at the point of sale.

Revenue

The total income generated by a company from its business activities, such as sales of goods or services, before any expenses are deducted.