Which of the Following Statements Regarding Performance Assessment Is Incorrect

question 29

Multiple Choice

Which of the following statements regarding performance assessment is incorrect?

• A) Measures should focus on the areas over which a manager has no capacity to influence the outcome.
• B) Assessment should be to reward good performance.
• C) Negative and positive feedback should be given within a reasonable timeframe.
• D) Measures should assist the entity in achieving the objectives of the entity.

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Definitions:

Plantwide Predetermined

This typically involves a single overhead rate calculated for an entire manufacturing plant, used to allocate overhead costs to products.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, such as the cost of utilities, maintenance, and salaries of supervisors.

Machine-Hours

A measure of production output or activity in terms of the total hours that machines are operated within a specific period.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the production period based on estimated costs.