Examlex
In Vroom's expectancy equation, the term expectancy represents:
Cost Distribution
The process of assigning or allocating an organization's costs to specific cost objects, such as products or departments.
Support Department Cost Allocation
The distribution of overhead costs from auxiliary departments (like maintenance or HR) to producing departments based on relevant allocation bases.
Support Department Cost Allocations
The process of distributing indirect costs from service departments to the departments that directly contribute to revenue generation.
Direct Method
A technique in cost accounting where only direct costs are assigned to cost objects, ignoring indirect costs.
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