Selection Methods Should Accurately Predict How Well Individuals Perform, and They

question 90

Multiple Choice

Selection methods should accurately predict how well individuals perform, and they should

• A) produce information that actually benefits the organization.
• B) not cost the company a great deal of money.
• C) all be applicable to many different roles in many different locations.
• D) only be applicable to the company where they are being used.
• E) only be used on current employees with leadership aspirations.

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Definitions:

Periodic system

An inventory accounting system in which updates to inventory levels and cost of goods sold are made at the end of an accounting period rather than after each sale.

Ending inventory

The aggregate worth of products ready for sale at the close of an accounting period, determined by summing up acquisitions to the initial inventory and deducting the cost of goods sold.

Cost flow assumption

An accounting method that determines how costs are allocated to inventory and cost of goods sold, such as FIFO, LIFO, or weighted average.

Gross profit

The difference between sales revenue and the cost of goods sold before accounting for operating expenses, interest, taxes, etc.