An Important Theoretical Revision to Adams' Original Equity Theory Formulation

question 30

Multiple Choice

An important theoretical revision to Adams' original equity theory formulation involves individual preferences for equity. An equity sensitive individual is someone:

• A) comfortable with an equity ratio less than his or her comparison other.
• B) comfortable with an equity ratio greater than that of his or her comparison other.
• C) who prefers an equity ratio equal to that of his or her comparison other.
• D) uncomfortable with a ratio either lesser or greater than that of his or her comparison other.

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Definitions:

Unit Of Product

A single item or instance of a product manufactured or sold by a company.

Input

Resources used in the process of production, including raw materials, labor, and overhead costs.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.

Actual Quantity

The real amount or number of units of materials, labor, or overhead used in the production process.