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A key motivational principle states that performance is based on a person's level of ability and motivation,expressed by the formula,Performance = ƒ (ability motivation).In this formula,ability and motivation are linked by a multiplicative relationship (ability motivation),rather than an additive relationship (ability + motivation).Explain the implications of this multiplicative relationship for performance,and specify why an understanding of this fact is important to the manager.
Cost
The amount of money or resources expended to acquire an asset, produce a product, or deliver a service.
Book Value
The amount of an asset or liability according to its balance sheet account, minus any depreciation, amortization, or impairment costs.
Inventory Items
Goods and materials that a business holds for the ultimate goal of resale or production.
List Price
The suggested retail price of a product or service, before any discounts or adjustments.
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