Kelvin Has Worked for His Company for Two Years and Had

question 102

Multiple Choice

Kelvin has worked for his company for two years and had to take on additional responsibilities when his colleague Charles retired. However, his managers have not given him a pay raise that he feels rightly compensates him for his increased workload. Kelvin finally decides to quit and begins looking for another job. His resentment related to his pay reflects the lack of ________ justice in the company that he works for.

• A) informational
• B) distributive
• C) retributive
• D) procedural
• E) interpersonal

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Definitions:

Direct Labor

The wages of employees or workers who are directly involved in the production of goods or services.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected, multiplied by the standard cost per unit.

Standard Materials Cost

The pre-determined cost of materials that should be consumed under efficient operating conditions.

Material Used

The raw materials consumed in the manufacturing process to produce goods.