Which of the Following Statements Is NOT True of Performance

question 35

Multiple Choice

Which of the following statements is NOT true of performance appraisals?

• A) They may be written directly or indirectly, depending on the situation.
• B) They may include humor if audience analysis dictates it will be well received.
• C) They should be brief.
• D) They should include factual evidence of strong or weak performance.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, including but not limited to utilities, maintenance of equipment, and factory staff salaries, excluding direct labor and direct materials.

Absorption Costing Income Statement

An income statement format that incorporates the full cost of manufacturing a product, including both fixed and variable manufacturing costs, in determining the cost of goods sold.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in the production process.

Cost of Goods Sold

Costs directly linked to the manufacture of goods a company sells, encompassing both materials and labor expenses.