A Performance Measure Is Said to Be Contaminated When

question 34

Multiple Choice

A performance measure is said to be contaminated when

• A)it does not measure all aspects of performance.
• B)it evaluates irrelevant aspects of performance.
• C)it is a subjective supervisory measure of job performance.
• D)it is not reliable over time.
• E)the overlap between actual job performance and the measure of job performance is maximized.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process.

Standard Cost System

An accounting method that uses cost estimates to predict the cost of producing or acquiring goods.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a related activity.

Electrical Motor

A device that converts electrical energy into mechanical energy, commonly used in a wide range of applications from household appliances to industrial machinery.