ABC IncUses "Mystery Shoppers" to Appraise Staff at Its Departmental Stores

question 5

Multiple Choice

ABC Inc.uses "mystery shoppers" to appraise staff at its departmental stores.What type of performance appraisal method is ABC Inc.using?

• A) graphic rating scales
• B) field reviews
• C) management by objectives
• D) behavioural observation scales

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Definitions:

Vertical Analysis

This is a method in financial statement analysis where each line item is listed as a percentage of another item. For income statements, each expense is presented as a percentage of sales, and on the balance sheet, each asset, liability, or equity is presented as a percentage of total assets.

Quick Assets

Cash and other current assets that can be easily converted to cash, such as temporary investments and accounts receivable.

Vertical Analysis

Vertical Analysis is a financial statement analysis tool that presents each item in the financial statement as a percentage of a base figure for the same period, facilitating ratio comparisons.

Horizontal Analysis

Horizontal analysis is a financial analysis method that compares historical financial data across different periods to identify trends and growth patterns.