If the Performance Evaluations That Salespeople Receive Are Based Solely

question 73

Multiple Choice

If the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important factors, the performance management system suffers from

• A)criterion contamination.
• B)lack of reliability.
• C)criterion deficiency.
• D)organizational politics.

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Definitions:

Materials Inventory

The cost of materials that have not yet entered into the manufacturing process.

Manufacturing Process

The sequence of operations that transforms raw materials into finished goods, involving tasks such as machining, assembly, and quality control.

Product Costs

The costs that are directly associated with the creation of products including direct labor, direct materials, and manufacturing overhead.

Advertising Expense

The cost incurred by a business to promote its products or services through various media channels, aiming to increase consumer awareness and sales.