The Forced Distribution Method Is Similar to Grading on a Curve

question 87

True/False

The forced distribution method is similar to grading on a curve meaning that predetermined percentages of those being rated are placed into performance categories.

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Definitions:

Operating Profit

Income from business operations after operating expenses are subtracted from gross profits, but before taxes and interest expenses.

Operating Expense

ongoing costs for running a product, business, or system.

Operating Profit

The earnings of a business from its core operations, excluding the effects of interest and taxes.

Mark-up

The surplus added onto the base cost of products intended to cover operational costs and generate profit.