Teknikal Inc

question 1

Multiple Choice

Teknikal Inc. decides to implement a new performance management system. It consists of a list of five traits used to evaluate all the employees. The manager considers one employee at a time; and on a continuum with different points, circles the number that signifies how much of a particular trait the individual has. Which type of performance management system is Teknikal Inc. using?

• A)Probability distribution
• B)Simple ranking
• C)Forced distribution
• D)Paired comparison
• E)Graphics rating scale

---

Definitions:

Labour Efficiency Variance

It measures the effectiveness of labor usage by comparing the budgeted hours for a set level of production against the actual hours worked, indicating efficiency or inefficiency in labor use.

Static Budget

A budget that does not change or adjust over the period, established at the start of a period and based on a fixed level of activity.

Standard Costing

A cost accounting system that assigns a fixed cost to inventory with the variance analyzed to improve cost control and management decisions.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to be worked, multiplied by the standard labor rate.