Alice Perceives Her Job Inputs as High and Her Job

question 184

Multiple Choice

Alice perceives her job inputs as high and her job outcomes as high.Alice perceives Jane's inputs as low and her outcomes as low.Jane's perceptions are identical to Alice's in all respects.According to equity theory,

• A)both women are experiencing inequity.
• B)Alice experiences inequity but Jane doesn't.
• C)Jane experiences inequity but Alice doesn't.
• D)both women are experiencing equity.
• E)both women should earn exactly the same income.

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Definitions:

Standard Hours

The predetermined amount of time expected to complete a task or produce a unit of product under normal conditions.

Actual Output

The real quantity of goods or services produced by a company during a specific period.

Labor Efficiency Variance

A measure in managerial accounting that compares the actual hours worked to the standard hours planned for a process, indicating efficiency in labor usage.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected (or standard) labor costs for the production achieved.