Application of Performance Appraisal Methods

question 95

Multiple Choice

Application of Performance Appraisal Methods
Johanna has just returned from a conference on performance appraisal methods. It was an interesting conference and one that was needed. Johanna knew that the company method of evaluating employees needed some drastic revision. The current method is to have the immediate supervisor write out an evaluation of each individual employee. The method was
time- consuming for the supervisors, and as much a test of their writing skills as it was an evaluation of performance. Johanna was leaning toward three choices. The first choice involved one of the oldest and most popular performance appraisals. This involved listing a set of performance factors such as quantity of work, quality of work, cooperation, etc. and then rating each factor on an incremental scale. The second choice involved a system that would focus on specific and measurable job behaviors. The third choice was very results- oriented and used extensively with managers and professional employees.
-What would be the primary advantage of using the first choice?

• A)quantitative data
• B)compares employees with one another
• C)focuses on end goals
• D)rich example of behaviorally based data

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Definitions:

Variable Costing

Variable Costing is an accounting method that only allocates variable costs to inventory and cost of goods sold, excluding fixed manufacturing overhead from inventory valuation.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenues, expenses, and net income.

Variable Costing

An accounting method that only considers variable costs (costs that fluctuate with production levels) in the calculation of product cost.

Absorption Costing

A costing approach that encompasses all costs associated with production, including direct materials, direct labor, and all overhead costs, both variable and fixed, in the unit cost of a product.