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.

---

Definitions:

Shutdown Point

The level of operation at which a business or economic activity is no longer profitable and should cease operations for financial reasons.

MC Curve

Refers to the Marginal Cost curve, which depicts the increase in total cost that results from producing one more unit of a good.

ATC Curve

The Average Total Cost curve, a graph that represents the cost per unit of output when all costs (variable and fixed) are considered.

Break-Even Point

The production level at which total revenues equal total expenses, resulting in neither a profit nor a loss.