Which of the Following Is Not a Problem with Subjective

question 15

Multiple Choice

Which of the following is not a problem with subjective performance evaluations?

• A)Shirking among supervisors
• B)Forced distributions of results by upper management
• C)Ability to rank employees on a standard rating scale
• D)Use of influence to bias outcomes

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Definitions:

Operating Income

The profit realized from a business's operations after subtracting operating expenses from the gross profit.

Contribution Format

An income statement format that separates fixed and variable costs to highlight the contribution margin.

Variable Expense Ratio

A metric that compares variable expenses (costs that change with production levels) to total sales, indicating how much revenue is consumed by variable costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the contribution towards covering fixed costs and generating profit.