What Is Distributive Fairness

question 8

Multiple Choice

What is distributive fairness?

• A) The customer's perception of the inequity of the resolution
• B) The perceived fairness of the process used to resolve complaints
• C) The balanced way of dealing with all customer complaints according to a prescribed format
• D) The customer's perception of the benefits received compared to their costs
• E) The way store employees can focus on getting the customer back into the store

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Definitions:

Actual Rate

The actual interest rate or return that is earned or paid on an investment, loan, or other financial product.

Standard Rate

A predetermined or fixed cost rate that is applied uniformly across units, activities, or time for budgeting or billing purposes.

Unfavorable Cost Variance

A variance that occurs when the actual cost exceeds the standard cost.

Favorable Cost Variance

A variance that occurs when the actual cost is less than standard cost.