Briefly Describe Vroom's Theory and Its Three Components

question 80

Essay

Briefly describe Vroom's theory and its three components. How can managers use Vroom's theory as they develop effective incentive plans?

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Definitions:

Cost Object

Anything for which a separate measurement of cost is desired, including products, services, projects, or customers.

Indirect Costs

Costs that cannot be traced directly to a cost object.

Cost Object

Anything for which a separate measurement of costs is desired, such as products, services, projects, customers, or activities.

Cost Object

Anything for which cost is measured and assigned, such as products, services, projects, or customers.