Select the Incorrect Statement Concerning the Human Factor of Performance

question 153

Multiple Choice

Select the incorrect statement concerning the human factor of performance evaluation.

• A) Variances should not be used to single out managers for punishment.
• B) Variances must be analyzed carefully to ensure that they are fully understood.
• C) Just because a cost variance is labeled as favorable doesn't necessarily mean that the manager should be commended for a job well done.
• D) Managers should always be punished for unfavorable variances.

Determine the present value of a future amount considering the time value of money.

Understand the effect of inflation on the value of money and calculate the equivalent future or past value of an amount.

Apply the concept of discounting to determine the present value of future cash flows.

Evaluate the economic impact of making early payments versus investing at a specific interest rate.

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Definitions:

Valued Beliefs

Principles or convictions held to be of important worth by an individual or group.

Desire

An intense desire to possess something or a deep hope for something to occur.

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Favored Team

The team or group that is generally expected or predicted to win a competition or achieve success due to its superior position or abilities.