Which of the Following Goals of a Performance Evaluation System

question 21

Multiple Choice

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

• A)Communicating company's expectations
• B)Motivating managers
• C)Promoting goal congruence
• D)Providing feedback

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to produced units based on the amount of work completed.

Conversion Cost

The sum of direct labor and manufacturing overhead costs, representing the costs to convert raw materials into finished goods.

Equivalent Units

A concept used in cost accounting to convert units of production into an amount of completed units to measure progress.

Conversion Costs

Costs specifically associated with converting raw materials into finished goods, which include labor and overhead.