Which of the Following Statements Is Supported by the Equity

question 14

Multiple Choice

Which of the following statements is supported by the equity theory?

• A)Inequity causes dissatisfaction.
• B)Equity will result in an effort to restore balance.
• C)If outcome-to-input ratio is equivalent, people will be dissatisfied.
• D)Assessments of equity are usually made objectively.
• E)Equity causes people to be dissatisfied with their treatment.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated cost of manufacturing overhead and an allocation base, used to assign overhead costs to products.

Direct Labour-hours

The total time spent by workers who are directly involved in the manufacturing or assembly of a company’s products.

Cost of Goods Sold

The total cost directly attributed to the production of goods that were sold, including materials, labor, and overhead.