Compare and Contrast the Two Normative Standards to Income Distribution

question 128

Essay

Compare and contrast the two normative standards to income distribution discussed in the text: The productivity standard and the egalitarian principle.

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Definitions:

Cost Center

A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.

Buying Division

A segment within a company responsible for purchasing products, materials, and services required for the company’s operations.

Transferred Item

Goods that are moved from one process, department, or location to another within the same company.