A Company Is Considering the Following Alternatives Which of the Following Are Relevant in Choosing Between the }

question 160

Multiple Choice

A company is considering the following alternatives: $\begin{array}{lrr}&\text { Alternative } 1&\text { Alternative } 2\\\text { Revenues } & \$ 120,000 & \$ 120,000 \\\text { Variable costs } & 60,000 & 70,000 \\\text { Fixed costs } & 35,000 & 35,000\end{array}$ Which of the following are relevant in choosing between the alternatives?

• A)Variable costs
• B)Revenues
• C)Fixed costs
• D)Variable costs and fixed costs

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Definitions:

Distributive Unfairness

The perception that the outcomes or rewards one receives are not proportionate to the contributions made or effort expended, compared to others.

Procedural Fairness

The fairness attributed to the processes that lead to outcomes, emphasizing transparency, and consistency in decision-making.

Interactional Fairness

Interactional fairness involves the quality of interpersonal treatment individuals receive when procedures are implemented, emphasizing respect and information conveyance.

Positive Emotions

Feelings that are generally pleasant in nature, such as happiness, joy, enthusiasm, and love, contributing to overall well-being.