A Performance Rating System Is

question 33

Multiple Choice

A performance rating system is

• A)Grade or score relating to overall performance
• B)Financial targets accomplished during the year
• C)Attendance of the individual during the year
• D)None of the above

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Definitions:

Equivalent Units

A concept in cost accounting used to convert partially completed goods into an equivalent number of fully completed units for inventory accounting purposes.

Conversion Costs

The combined costs of direct labor and overhead required to transform raw materials into finished goods.

First-In, First-Out

An inventory valuation method where the oldest inventory items are recorded as sold first.

Equivalent Units

This refers to the quantity of partially completed goods, expressed in terms of fully completed units, used in process costing to accurately allocate costs between completed and unfinished items.