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Given That the Primary Objective of Performance Appraisal Is the Improvement

question 8

Essay

Given that the primary objective of performance appraisal is the improvement of performance in employees' present jobs, what is the important secondary objective?


Definitions:

Variable Overhead Rate

This refers to the rate at which indirect, variable costs accumulate over a given period, often linked to production or activity levels.

Efficiency Variance

A measure used in cost accounting to assess the difference between actual and expected usage of resources, often related to time or cost of labor.

Budget Variance

The difference between the budgeted or planned amount and the actual amount spent or received.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, used to apply manufacturing overhead costs to products based on a chosen activity base such as machine-hours or labor-hours.

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