The Equivalent of a 20/70/10 Forced Distribution Method of Performance

question 18

True/False

The equivalent of a 20/70/10 forced distribution method of performance appraisal applied in a classroom would require 10 percent of the students to be given a failing grade,so that they would be motivated to either improve or to drop the class.

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Definitions:

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utilities and maintenance expenses.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost of direct materials, based on standard cost.

Standard Direct Labor-Hours

The predetermined amount of labor time estimated or expected to produce a unit of output, used for budgeting and measuring efficiency.