What are the remains after the costs of running a business have been paidA. stockB. taxesC. profits

An employee, rightly or wrongly, perceives the boss doesn't like him. As a result, he expects to get a poor appraisal, regardles

levacccp [35]

According to the expectancy theory, the employee is likely to see the "effort-performance" relationship as weak and demotivating.

<h3>What is expectancy theory?</h3>

According to expectancy theory, people are more motivated to work hard if they believe their efforts will be noticed and rewarded.

The importance of expectancy theory are-

When applied correctly, expectation theory can aid managers in understanding why people choose between various behavioural options.
Managers should implement mechanisms that closely link rewards to performance to improve the relationship between effort and results.
It is based on an individual's self-interest, who desires to maximize enjoyment and reduce dissatisfaction.
This philosophy places a strong emphasis on perception and expectations, saying that reality is irrelevant. It places a focus on benefits or payoffs.

According to the Expectancy Value Theory (Vroom, 1964), two things affect why a person chooses to engage in a particular activity or action:

Expectancy is the likelihood that a desired (instrumental) outcome will be attained as a result of the behaviour or activity.
Value is the degree to which the individual appreciates the intended outcome.

To know more about the Expectancy Value Theory, here

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4 0

1 year ago

Wildhorse Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $40,100

olga55 [171]

Answer:

31-Dec-19

Dr. Lease receivables $ 180,498

Cr. Sales revenue $180,498

Dr. Cost of goods sold $ 170,000

Cr. Inventory $ 170,000

Explanation:

The lease is recorded on the present value of all the payment to be made in the future.

We will use the present value of annuity formula

Present value of Lease = P [ ( 1 - ( 1 + r )^-n ) / r ]

where

P = annual payment = $40,100

r = implicit rate = 11%

n = numbers of payments = 6 payments

Placing values in the formula

PV of Lease = $40,100 x [ ( 1 - ( 1 + 11% )^-6 ) / 11% ] = $169,645

Now calculate the present value of guarantee residual value

PV of guarantee residual value = $20,300 x ( 1 + 11%)^-6 = $10,853

Fair value of lease = Present value of Lease payment + Present value of guarantee residual value

Fair value of lease = $169,645 + $10,853 = $180,498

Cost of equipment will be recorded in the cost of goods sold and Inventory as well.

We will pass two separate journal entries first to record the lease receivable and second to record the cost of the equipment.

3 0

3 years ago

Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina

34kurt

Answer:

The estimated inventory at the end of February is $73400 as shown below

Explanation:

Beginning Inventory $57,800

Plus: Net purchases $120000

Freight-in $2,700

Cost of Goods Available for Sale $180500

less: Cost of Goods Sold

Net Sales$180000

Less Estimated Gross Profit $81000

Estimated Cost of Goods Sold $99000

Estimated Inventory before Theft 81500

Less: Stolen Inventory 8,100

Estimated Ending Inventory 73400

Gross profit $180000*45%=$81000

8 0

3 years ago

Avia Company sells a product for $150 per unit. Variable costs are $70 per unit, and fixed costs are $1200 per month. The compan

Leya [2.2K]

Answer:

$80 per unit

Explanation:

Data provided in the question:

Per unit selling cost of the product = $150

Per unit variable cost of the product = $70

Total fixed cost per month = $1200

Now,

The unit contribution margin is calculated as:

unit contribution margin = Selling price per unit - Variable cost per unit

Thus,

unit contribution margin = $150 - $70

or

unit contribution margin = $80 per unit

Hence,

The correct answer is option $80 per unit

4 0

3 years ago

Asarta Inc. is polluting into a nearby fishing stream; doing so benefits them $40,000 a year. The fishermen are unhappy as their

IceJOKER [234]

Answer:

a. Asarta Inc. could pay the fishermen $8,500 and keep polluting

Explanation:

The fishermen sell the fish for $8,000 a year at local market.

Due to pollution emitted by company into stream, their catch is dwindling and also their income.

The company benefits from usage of stream to the tune of $4,000 a year. In such scenario, if company compensates the fishermen for any amount between $8,000 and $40,000 then, in that case, optimal solution to the problem can be achieved in absence of any other transaction cost as per the Coase Theorem.

Therefore, The Asarta Inc. could pay the fishermen $8,500 and keep polluting.

4 0

3 years ago