A Major Disadvantage of the Point Method of Job Evaluation

question 17

Multiple Choice

A major disadvantage of the point method of job evaluation is that:

• A)it is relatively difficult to explain to employees.
• B)it is relatively time-consuming and costly to develop.
• C)job evaluators may abuse the system.
• D)the method is highly subjective.

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Definitions:

Incremental Revenues

Additional income generated from a new project or decision, above and beyond existing revenues.

Incremental Variable Costs

Costs that vary with the level of output or activity, changing as the quantity produced changes.

Fully Depreciated

A status of an asset whose entire cost has been expensed with respect to depreciation, leaving its book value at zero except for salvage value, if any.

Excess Capacity

A situation where a company can produce more goods or services than currently demanded by its market.