Leniency and Strictness Biases in Performance Evaluation More Commonly Occur

question 51

True/False

Leniency and strictness biases in performance evaluation more commonly occur when performance standards are too detailed or explicit.

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Definitions:

Depreciation

A method to allocate a portion of the original cost of an asset to expense over its expected useful life to reflect its decreasing value.

Tax Rate

The slice of a corporation's or individual's income designated for tax.

Annual Costs

The total expenses incurred by an individual or organization over the course of a year.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, considering the risk involved.