One of the Major Disadvantages of Ranking as an Appraisal

question 123

Multiple Choice

One of the major disadvantages of ranking as an appraisal method is that it

• A) cannot be used to compare people in different work groups.
• B) does not measure the employees' motivation to use their ability on a daily basis.
• C) has opportunity bias.
• D) compares employees to a fixed standard.
• E) creates excessive competition among employees.

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Definitions:

Specific Account

An individual account within a larger accounting system that tracks transactions related to a particular item or entity.

Aging

A method used to categorize accounts receivables based on the length of time the invoice has been outstanding to manage and collect debts.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible, used to create a more accurate report of net income.

Bad Debts Expense

An expense reported on the income statement, representing the estimated amount of receivables that will not be collected.