Some Organizations Ask Managers to Place a Percentage of Their

question 110

Multiple Choice

Some organizations ask managers to place a percentage of their employees in the bottom performance category on every performance evaluation exercise, which in some cases may mean they are fired. Which type of performance evaluation method does this exemplify?

• A) forced-distribution system
• B) checklist method
• C) percent method
• D) forced-choice method

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Definitions:

Predetermined Overhead Rate

A rate calculated before a production period based on estimated overhead costs and estimated activity, used to allocate overhead costs to products.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or projects, based on expected conditions.

Machine-Hours

A measure of manufacturing time that indicates the amount of time a machine is in use.

Machine-Hours

A measure of the amount of time that machinery is in operation, typically used as a basis for allocating manufacturing overhead costs.