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After Several Years of Sound but Unimpressive Performance,Foothill Federal Was

question 2

Multiple Choice

After several years of sound but unimpressive performance,Foothill Federal was bought out by Cashcorp,a much larger financial organization.Hoping to turn the new network into a stronger asset to the corporation,Cashcorp's managers begin by examining Foothill's existing performance appraisal process.Cashcorp managers quickly determine that employee evaluations have been handled very superficially in the past,typically by division managers at the central location.As a result,seniority,rather than productivity,has been the primary rationale for promotions and rewards.The HR manager assigned to integrating Foothill into the Cashcorp family immediately sees that changes will need to be made in the performance appraisal process.However,he does not want to move too quickly,as the merger has already made the Foothill workforce worried that major terminations and layoffs are coming soon. Which of the following,if true,would most strongly support beginning a thorough performance appraisal of the Foothill locations by re-examining performance criteria?

Definitions:

Variable Costs

Expenses that fluctuate with the level of output, including costs such as raw materials and labor.

Fixed Costs

Expenses that do not change with the level of production or sales.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.

Variable Costs

Variable costs that change in direct correlation with production output or sales figures, like labor costs and materials expenses.