What Is the Advantage of Using a Rating Method During

question 83

Multiple Choice

What is the advantage of using a rating method during the performance review process?

• A) Each employee is compared to all other employees in the group.
• B) Each employee is compared to a fixed standard.
• C) The recency error is eliminated.
• D) Managers do not need to utilize a 360-degree review.
• E) Providing employee with meaningful feedback is easier.

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Definitions:

Depreciable Asset

A long-term asset subject to depreciation, reflecting the decrease in value over time due to wear and tear, age, or obsolescence.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Valuation Technique

Methods and procedures used to estimate the value of an asset, liability, or company, including discounting cash flow analysis and comparative market analysis.

Expense Recognition

The accounting principle that costs are recorded in the period they are incurred in and matched with the revenues they help to generate.