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Identify and explain the possible outcomes of equity theory comparisons and ways to restore the balance for each outcome.
Labor Hours
The number of hours worked by employees for the production of goods or services.
Machine Hours
A measure of production or work performed, calculated as the number of hours a machine is operated.
Lease
A contractual agreement where one party (the lessor) allows another party (the lessee) to use an asset for a specified period in exchange for payment.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the quantity of output produced, representing the average cost per unit of output.
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