In an organization with compensation that has <u>hybrid outcome interdependence</u>, a <u>given </u>portion of the employee's pay depends on the team's output and performance.
Hybrid outcome interdependence refers to the terms of employment in which a team’s output and performance determines a specified portion of the members’ salary. So, if their performance fails to meet given targets or standards, members will end up getting lower pay.
On the other hand, there are incentive structures linked to such arrangements, so that overachieving the targets would lead to members receiving a bonus.
Hybrid outcome interdependence is a key corporate strategy to ensure employees put in their best effort, as incentive and disincentive structures are built into the pay structure.
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Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in the cash flows from investing activities section.
What is depreciation?
Depreciation is an accounting technique that distributes an asset's cost throughout its anticipated useful life. Depreciation is a recurring expense that businesses report on their income statement. Assets degrade with time, losing value.
Which activities are reported on the statement of cash flows?
Transactions must be divided into the three categories of operating, investing, and financing activities that are shown on the statement of cash flows.
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Answer:
A
Explanation:
In this question, we are to evaluate the validity of the options. We were told he used the acquisition method. When do we use the acquisition method?
The acquisition method is used when a company is taken in by another company by using a merger, acquisition or through a consolidation.
Now, out of all the options presented, we can see that the selling price less the acquisition value is recorded as a realized gain or loss.
