Which of the Following Situations Is Most Likely to Explain

question 48

Multiple Choice

Which of the following situations is most likely to explain a net operating asset turnover that is higher than the industry norm?

• A)The company has more recently purchased fixed assets.
• B)The company uses FIFO while competitors use LIFO.
• C)The company uses the accelerated depreciation method while competitors use the straight line method.
• D)The company purchases more credit supplies than competitors.

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Definitions:

Central Tendency Error

A bias in evaluating others where assessments tend to cluster around a central point, ignoring extreme performances.

Performance Appraisal

A systematic evaluation process in which the work performance of an employee is assessed, typically by their manager, with feedback provided for future improvement.

Behaviorally Anchored Rating Scales

A performance appraisal method that uses specific examples of behavior to rate an employee's performance.

Performance Effectiveness

The level of success in accomplishing goals and resolving identified issues.