Identify the Three Basic Categories of Employee Performance and How

question 69

Essay

Identify the three basic categories of employee performance and how each can be assessed for a performance appraisal.

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Definitions:

Incremental Cash Flows

The additional operating cash flow that an organization receives from taking on a new project.

Opportunity Costs

The expense incurred by not choosing the second-best option available during decision-making.

Initial Cash Flow

The first influx or outflow of cash associated with an investment or project, marking the beginning of its cash flow timeline.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.