Which of the Following Statements Is/are Correct When Describing Expectancy

question 26

Multiple Choice

Which of the following statements is/are correct when describing expectancy theory?
i. The preference that an employee has for a particular reward is called valence.
ii. Expectancy is the likelihood of achieving the performance necessary to earn the reward.
iii. An individual's perception that the effort put into a task will lead to a specific reward outcome is fundamental to expectancy theory.

• A) i and ii
• B) ii and iii
• C) i and iii
• D) All of the given answers

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Definitions:

Total Cost Concept

A management accounting concept that includes all costs, both fixed and variable, incurred in producing a product or delivering a service.

Cost-Plus Approach

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.

Markup

The additional amount added to the cost of goods to cover overhead and profit.

Total Cost Concept

An approach in accounting that considers the total expenditure involved in producing or acquiring a product or service, including all direct and indirect costs.