Rating an Employee's Performance Low Because a Production Machine Broke

question 50

Multiple Choice

Rating an employee's performance low because a production machine broke due to a manufacturing defect is obviously unfair and is called __________.

• A) central tendency
• B) opportunity bias
• C) high potential error
• D) leniency error

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Managerial Levers

Tools or mechanisms that managers can use to influence the performance and direction of their organization, such as decision-making processes, organizational structure, and resource allocation.

Large Lots

Bulk quantities of goods, often purchased or produced to achieve economies of scale but can lead to increased storage costs and risks.

Fixed Cost

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.