The Major Shortcoming of Using Operating Income as an Investment

question 8

True/False

The major shortcoming of using operating income as an investment center performance measure is that, it ignores the amount of assets invested in each center.

Grasp the objectives of effective compensation management, including cost control, behavior reinforcement, and legal compliance.

Understand the purpose and process of job evaluation in establishing pay levels.

Recognize the importance of wage and salary surveys in determining compensation.

Comprehend different methods of job evaluation and their application.

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Definitions:

Individuality Corollary

A principle that acknowledges the uniqueness of each individual's perception and understanding of the world, as proposed by George Kelly's personal construct theory.

Kelly's

Pertains to George Kelly's Personal Construct Theory, which focuses on how people create constructs as mental models to interpret the world.

Opinions

Beliefs or judgments that are not based on certainty or knowledge but rather on what one thinks or feels to be true or probable.

Neurotic Behavior

Patterns of thinking, feeling, and behaving that are maladaptive, self-defeating, and indicative of some form of psychological distress.