Which of the Following Is LEAST Associated with the Failure

question 58

Multiple Choice

Which of the following is LEAST associated with the failure of individual-based pay-for-performance systems?

• A) Performance appraisals are used for only one purpose.
• B) Supervisors manipulate employee ratings.
• C) Managers and employees disagree on the evaluation.
• D) The job is primarily knowledge-based.

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Definitions:

Standard Factory Overhead Rate

The predetermined rate used in cost accounting to allocate estimated overhead costs to individual units of production based on a consistent measure, like labor hours.

Machine Hour

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to products based on the number of hours the machines are used in production.

Normal Capacity

The average level of production or activity that a company can expect to achieve under normal conditions over a period.

Controllable Variance

The portion of variance in cost or revenue that can be directly managed or influenced by actions of the management.