When Variances Are Used as an Input to the Performance

question 10

Multiple Choice

When variances are used as an input to the performance evaluation system,which of the following scenarios may be encountered?

• A)Purchasing managers may buy too much inventory to get a bulk purchase discount
• B)Purchasing managers may buy lower quality materials to generate a favorable price variance
• C)If standards are set at easily achievable levels,some people will only do enough to meet the target,but no more
• D)When labor efficiency is measured on a team or production cell basis,the free rider may take advantage
• E)All of the choices are correct

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Definitions:

Methane

A simple hydrocarbon with the formula CH4, it is the main component of natural gas and a potent greenhouse gas.

Lewis Structure

A graphical representation of the electron distribution around atoms and the chemical bonds that hold the atoms together.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Lewis Structure

A diagram that shows the bonding between atoms of a molecule and the lone pairs of electrons that may exist in the molecule.