Which of the Following Goals of a Performance Evaluation System

question 129

Multiple Choice

Which of the following goals of a performance evaluation system is accomplished when targets are compared to actual results?

• A) Communication of a company's expectations
• B) The promotion of goal congruence
• C) Motivation of assembly line employees
• D) Providing feedback to management

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Definitions:

Receivable Turnover

Receivable turnover is a financial ratio that measures how efficiently a company collects its accounts receivable, calculated by dividing net credit sales by average accounts receivable.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock levels.

Current Ratio

A metric assessing how effectively a company can fulfill its short-term financial commitments with its assets on hand.

Acid-test Ratio

A stringent measure of liquidity that evaluates a company's ability to cover its short-term liabilities with its most liquid assets.