A Company Determined That the Budgeted Cost of Producing a Product

question 134

Multiple Choice

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1 there were 80000 units on hand the sales department budgeted sales of 300000 units in June and the company desires to have 120000 units on hand on June 30. The budgeted cost of goods sold for June would be

• A) $7800000.
• B) $11400000.
• C) $9000000.
• D) $10200000.

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Definitions:

Equity Theory

A concept in social psychology that suggests fairness in the distribution of resources and efforts affects motivation and satisfaction.

Perceive Inequity

The subjective feeling that one has been treated unfairly compared to others.

Change Work Inputs

Refers to modifications in the resources, processes, or materials used in a work environment to improve efficiency or outcomes.

Change Rewards Received

Incentives or benefits provided to individuals or teams for successfully implementing or adapting to organizational changes.