In Order to Choose the Proper Activity Base for a Cost

question 14

True/False

In order to choose the proper activity base for a cost, managerial accountants must be familiar with the operations of the entity.

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Definitions:

Overjustification Effect

The phenomenon where providing external incentives for an already internally rewarding behavior can lead to a reduction in intrinsic motivation.

Premack Principle

A principle of reinforcement that states a more preferred activity can be used as a reward to reinforce a less preferred activity.

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if they can, necessitating control and coercion by management.

Theory Y

A management approach that suggests employees are intrinsically motivated, enjoy their job duties, and work to better themselves without direct supervision.