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What Is the Reasoning Behind the Use of Cost Pools

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What is the reasoning behind the use of cost pools in an activity-based costing system?


Definitions:

Feedback

Information provided regarding aspects of one’s performance or understanding, which can be used as a basis for improvement.

Halo Error

A bias in performance appraisals where an evaluator's overall impression of an individual, positive or negative, influences the assessment of specific traits or behaviors.

Appraisal Politics

The influence of personal agendas, biases, and power dynamics within the performance appraisal process, often affecting the fairness and accuracy of evaluations.

Performance Appraisal

The process by which an employee's job performance is evaluated, typically annually, by their supervisor, encompassing feedback on achievements and areas for improvement.

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