The First Step in Performance Analysis Is to Appraise the Employee's

question 46

Multiple Choice

The first step in performance analysis is to appraise the employee's performance since, to improve it, the firm must first determine the person's current performance compared to

• A)what it should be.
• B)co-workers' performance.
• C)what it really is.
• D)work group performance.
• E)managerial performance.

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Definitions:

Financial Break-even

The point at which total revenue equals total costs and expenses, leaving the company with no net profit or loss.

Variable Cost

Costs that move in correspondence with the quantity of products made or services sold.

Fixed Costs

Expenses that do not vary with production volume or business activity level, such as rent, salaries, and insurance premiums.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the extent to which a firm uses fixed versus variable costs.