According to Adams's Theory of Inequity, Which of the Following

question 12

Multiple Choice

According to Adams's theory of inequity, which of the following is a strategy for restoring equity?

• A)Rationalizing the equity
• B)Altering a person's inputs
• C)Including a hierarchy
• D)Altering the organizational structure

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Definitions:

Predetermined Overhead Rate

A calculated rate used to charge overhead costs to products or job orders, determined by dividing estimated overhead costs by an allocation base.

Manufacturing Overhead

All indirect costs associated with the production process, like maintenance, utilities, and quality control.

Predetermined Overhead Rate

An estimated overhead rate used to allocate manufacturing overhead costs to products, calculated prior to the accounting period.

Direct Labour Hours

The cumulative hours employees spend that are directly linked to the manufacturing of goods or the provision of services.