According to Equity Theory,if the Ratio of an Employee's Outcomes

question 82

Multiple Choice

According to equity theory,if the ratio of an employee's outcomes to his/her inputs is equal to the ratio of another employee's outcomes to inputs then the employee is motivated to ________.

• A) do nothing
• B) increase his own outcomes
• C) change the referent
• D) reevaluate the other employee's inputs

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Definitions:

Average-cost Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.

Cost of Goods Sold

The specific costs incurred during the manufacturing of a company's merchandise for sale.

Inventory

The raw materials, work-in-process products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.