An Accounting Firm Conducts Periodic Reviews of the Distribution of Pay

question 2

Multiple Choice

An accounting firm conducts periodic reviews of the distribution of pay and other rewards granted to employees, such as promotions and increased office space. The goal of the reviews is to confirm that employees who received greater pay increases or other favorable outcomes have made significant contributions to the organization. This ensures the company uses ________ when rewarding its employees.

• A)distributive equality
• B)distributive fairness
• C)procedural justice
• D)compensation justice
• E)distributive justice

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Definitions:

Market Prices

The current price at which a good or service can be bought or sold in a market.

Efficient Level

The efficient level refers to a state of resource allocation where it is impossible to improve the situation of one party without worsening the situation of another, often associated with maximizing output without wasting resources.

Output

The total amount of goods or services produced by a firm or country.

Marginal External Cost

The cost of producing one additional unit of a good or service that is borne by someone other than the producer or consumer, such as environmental pollution.