Relative Performance Evaluations (RPE) Are Not Designed To

question 73

Multiple Choice

Relative performance evaluations (RPE) are not designed to:

• A) compare managers to other comparable managers.
• B) compare divisions with other comparable divisions.
• C) remove the effect of environmental factors that are beyond a manager's control.
• D) restate departmental goals so meaningful comparisons can be made.

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Definitions:

Manufacturing Process

A series of steps involving the conversion of raw materials into finished products through various production operations.

Process Costing System

An accounting methodology that accumulates and assigns costs to large volumes of identical or similar units of output.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Journal Entry

A record in the accounting ledger that represents a single transaction and its effect on accounts.