Which of the Following Theories Suggests That an Employee Must

question 27

Multiple Choice

Which of the following theories suggests that an employee must regard his own ratio of merit increase pay to performance as similar to the ratio for other comparably performing people in the company?

• A)comparable ratio theory
• B)comparable pay theory
• C)equality theory
• D)equity theory

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Definitions:

Inventoriable Costs

Costs that are initially recorded as inventory on the balance sheet and recognized as cost of goods sold only when the inventory is sold.

Freight Charges

Costs associated with transporting goods from one location to another, often incurred by the seller to deliver goods to a customer.

Purchase Returns

Goods returned by the buyer to the seller, usually due to defects or otherwise not meeting expectations, resulting in a refund or credit.

Average Cost Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.