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A pilot test should be conducted after all potential problems have been fixed and the performance management system is fully operational throughout the organization.
Straight-Line Method
A depreciation technique that allocates an equal amount of the asset's cost to each year of its useful life.
Residual Value
The estimated value of an asset at the end of its useful life.
Internally Generated Goodwill
The increase in value of a business due to factors like reputation, brand, customer base, and relationships that are developed internally over time and not acquired or purchased.
Intangible Asset
An asset that lacks physical substance and usually represents legal rights or competitive advantages (e.g., patents, trademarks, copyrights).
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