Which of the Following Is FALSE About Equity Theory

question 133

Multiple Choice

Which of the following is FALSE about equity theory?

• A) People compare themselves to co-workers, others elsewhere in the organization, and people in other organizations.
• B) It only matters how people think they are treated; it does not matter what is really happening from the manager's perspective.
• C) People believe that working hard will result in achieving a desired level of task performance.
• D) People compare their personal outcomes to others' outcomes with the result of perceived equity.
• E) People will make equity comparisons whenever rewards are allocated.

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Definitions:

Static Budget

A budget that is based on fixed assumptions and does not change with variations in business activity levels.

Master Budget

A comprehensive financial planning document incorporating all of an organization's financial plans, including sales, production, and cash budgets.

Overhead Budget

An estimation of variances and anticipated indirect costs associated with the normal operations of a business.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, showing the relationship between cost, volume, and profit.