Before You Can Measure Performance, What Must You Do

question 9

Multiple Choice

Before you can measure performance, what must you do?

• A)evaluate employees
• B)improve performance
• C)set performance standards
• D)analyze market conditions
• E)experiment with methods

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating factory overhead costs to products.

Standard Cost

A predetermined cost of manufacturing a product or performing a service, used as a benchmark to measure performance.

Direct Labor

The cost of the work performed by employees directly involved in manufacturing a product or providing a service.

Time Variance

The gap between the time actually needed to accomplish a task and the time that was anticipated for it.