A Company Would Be Reducing Its Discretionary Costs If It

question 44

Multiple Choice

A company would be reducing its discretionary costs if it

• A)fired a production supervisor.
• B)closed its research and development department.
• C)successfully negotiated a reduction in its factory rent.
• D)reduced its direct labor costs by hiring temporary workers.

---

Definitions:

Conditional Contracts

Contracts that require certain conditions to be met before they can be fully enforceable or before an obligation to perform arises.

Equity Theory

A theory of motivation that posits individuals assess their job satisfaction and motivation based on their perception of fairness in the exchange of inputs and outcomes in their employment.

Comparison Person

An individual used as a reference point in social comparison processes, influencing one's self-evaluation, feelings, and behaviors.

Inequity

A condition stemming from unfair, unjust treatment or disparities among individuals or groups, often in terms of resources, rights, or opportunities.