Suppose the Performance Evaluations That Delivery Drivers Receive Are Partially

question 76

Multiple Choice

Suppose the performance evaluations that delivery drivers receive are partially influenced by the fact that some drivers operate in areas where there are major traffic problems while others operate in areas with few traffic problems.Which of the following would these performance evaluations suffer from?

• A)criterion contamination
• B)lack of relevance
• C)lack of reliability
• D)rater bias

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Definitions:

Cost Centre Managers

Individuals responsible for managing a department or unit within an organization that does not directly add to profit but incurs costs.

Variance Analysis

The process of investigating the difference between planned financial outcomes and actual financial performance.

Standard Costs

The predetermined costs associated with manufacturing a product, which are used for budgetary and inventory valuation purposes.

Residual Income

The income that remains after deducting all required costs of capital from the operating income.