Samuel, a Sales Associate at an Electronics Store, Learns That

question 51

Multiple Choice

Samuel, a sales associate at an electronics store, learns that his base pay is higher than any other sales associate in the store.He justifies his higher salary with the idea that he must be a top sales associate, generating more revenue than anyone else.This example demonstrates which of the following methods for reducing perceived inequity?

• A)Working harder, not smarter
• B)Changing outcomes
• C)Changing work effort
• D)Changing perceptions
• E)Leaving the job

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Definitions:

Direct Labor-hours

A measure of the labor time directly involved in the production of goods, used as a base for allocating overhead in some costing systems.

Fixed Overhead

Expenses that remain constant for a certain level of production or period of time, such as rent, salaries, and insurance, not directly tied to the level of production.

Work In Process

Inventory that includes goods partially through the production process but not yet complete.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, utilities, and salaries of managers.