What Can Be Done to Ensure Reliability in a Performance

question 19

Multiple Choice

What can be done to ensure reliability in a performance appraisal system?

• A) appraising the appropriate dimensions of performance
• B) capturing evaluations from multiple sources and at different times over the course of the evaluation period
• C) ensuring that employees clearly understand what dimensions are being evaluated
• D) measuring the dimensions of performance in a valid way

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, divided by revenue, expressed as a percentage.

Variable Cost

Expenses that fluctuate in direct proportion to changes in output or activity level, including costs like supplies and commission fees.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used in production.

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.