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.

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Definitions:

Regression Method

A statistical approach used to model and analyze the relationships between a dependent variable and one or more independent variables.

Industrial Lathe Sales

The commercial activity surrounding the buying and selling of industrial lathes, which are machines used to shape metal, wood, or other materials.

First-Order Autoregressive Model

A time series model where the current value is based on a linear combination of the previous value and a stochastic error term.

Nonautocorrelated Random Error

Errors in a dataset that occur randomly and are not correlated with each other, indicating no predictable pattern in the fluctuations.