Which of the Following Is the Role of a Performance

question 59

Multiple Choice

Which of the following is the role of a performance evaluation system in a multinational corporation?

• A) Monitor organizational effectiveness
• B) Identify areas that need improvement
• C) Assess how well division managers are doing
• D) All of the above

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Definitions:

Standard Costs

Predetermined or budgeted costs for materials, labor, and overhead used for cost control and financial planning.

Materials Quantity Variance

The variance between the real amount of materials consumed in the manufacturing process and the anticipated standard amount.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected, or budgeted, cost.

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as indirect materials and utilities for machinery.