The Costs of Idle Capacity Should Be Assigned to Products

question 74

True/False

The costs of idle capacity should be assigned to products in activity-based costing.

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Definitions:

Horns Error

A horns error occurs when the manager downgrades other aspects of an employee’s performance because of a single performance dimension.

Establishment Stage

The phase in a business or career development during which a foundation is built and stabilized, leading towards growth.

Horns Error

A bias in performance appraisals where a person is judged based on a single negative trait, impacting the overall assessment negatively.

Behaviorally Anchored Rating Scale

is a performance appraisal method that uses specific descriptions of employee behaviors to rate performance on a scale, providing a more objective and concrete evaluation.