If an Appraisal Focuses on a Narrow Set of Results

question 56

Multiple Choice

If an appraisal focuses on a narrow set of results criteria to the exclusion of other important but less quantifiable performance dimensions, the performance management system may suffer from

• A)criterion deficiency.
• B)rater bias.
• C)lack of reliability.
• D)criterion contamination.

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Definitions:

Fair Value Accounting

An accounting approach where assets and liabilities are recorded at their current market value, not just historical cost.

Valuation Allowance

An allowance against deferred tax assets indicating that it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Trading Investments

Securities bought and held primarily for selling in the short term to profit from price differences.

Realized Gain

The profit made from selling an asset at a higher price than its purchase cost.