Common Review Dates Provide Which of the Following Advantage

question 42

Multiple Choice

Common review dates provide which of the following advantage?

• A)The company can equate all employees' job performance at the same time.
• B)The company minimizes the administrative burden of the plan.
• C)The company trains supervisors about the most effective way to conduct performance reviews.
• D)Common review dates ensure that some employees' reviews will be overlooked.

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Definitions:

MACRS

Modified Accelerated Cost Recovery System, a method of depreciation used for tax purposes in the United States to recover the cost of tangible property over its useful life.

Cost of Capital

The average rate of return a company must pay to its security holders to fund its assets, integrating the cost of debt and equity.

Incremental Cash Flows

The additional cash flow from taking on a new project, considered essential for analysis in capital budgeting.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered, not affecting future business decisions.