Trait Appraisals Have Both Advantages and Disadvantages for the Organization

question 36

Essay

Trait appraisals have both advantages and disadvantages for the organization. Explain what is meant by this term, and discuss three disadvantages of this technique.

---

Definitions:

Multiple-Element Sales

Transactions that involve the sale of multiple products or services for a single price, requiring allocation of revenue among the different elements.

Revenue Recognition

The accounting rule that identifies the precise circumstances for recognizing or recording revenue.

Contract Period

The duration over which a contract is active, specifying the start and end dates of the agreement.

Franchise Fee Accounting

The process of recognizing and managing the fees paid and received for the right to use a franchisor’s trademark and operational model in accounting books.