Because Nothing Can Be Done About Sunk Costs, They Are

question 170

True/False

Because nothing can be done about sunk costs, they are irrelevant to decisions about business strategy.

Understand the role of expectations in Vroom's expectancy theory, including the concepts of expectancy, instrumentality, and valence.

Identify the key components of goal-setting theory and how goal specificity and difficulty affect motivation.

Acknowledge the significance of justice and fairness in organizational settings, distinguishing between commutative justice and procedural justice.

Appreciate the application of motivation theories in practical settings, including their implications for management practices.

---

Definitions:

Idle Capacity

The portion of a company's resources or production capability that is not currently being utilized to its full potential.

Activity-based Costing

Activity-based costing allocates overhead costs based on the specific activities that contribute to overhead in producing a product or service.

Processing Batches

Groups of items or units processed together in one operation to improve efficiency, often in manufacturing or data processing contexts.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of activities.