What Is the Primary Purpose of Performance Reviews

question 12

Multiple Choice

What is the primary purpose of performance reviews?

• A)to make employees fully aware of their current performance
• B)to clarify what is important to the organization
• C)to link performance and compensation
• D)to improve future performance

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Definitions:

Period Cost

Any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets. A non-manufacturing cost that is expensed in the period in which it is incurred.

Special Order

A special order refers to a one-time or unusual request from a customer that can require unique production or ordering requirements outside of normal operations.

Product Costs

Costs directly associated with the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Current Profits

The earnings a company has generated during a particular period, not taking into account future liabilities or investments.