List and Explain the Three Factors on Which Performance Is

question 73

Essay

List and explain the three factors on which performance is evaluated in a performance appraisal. Author: Or, simpler, "on which performance is appraised."

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Definitions:

Plantwide Rate

A single overhead absorption rate used throughout an entire manufacturing plant, applying the same rate to all products regardless of the department.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.

Departmental Overhead Rates

The method for allocating overhead costs to specific departments based on relevant allocation bases, such as labor hours or machine hours.

Budgeted Activity Rate

The estimated rate or cost of business activities based on the budget for a specific period, often used for forecasting and planning purposes.