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Marilyn is the department head for a large call centre and is responsible for conducting quarterly performance evaluations on her employees. While a good portion of the evaluation is based on areas such as friendliness, punctuality, and customer ratings, roughly half of the appraisal is based on call volume and the conversion of callers to customers. An employee's evaluations are used to determine quarterly raises. Algemar and Nick both work for Marilyn. Marilyn feels that she is a mentor for Nick while she feels that she simply inherited Algemar from another department; thus, Marilyn sometimes strikes from Nick's call records customers who are extremely difficult or perhaps too set against buying the product. For the last quarter, Marilyn awarded Nick a raise while she did not award one to Algemar. Marilyn's awarding Nick a raise based on his evaluations could best be called ________.
Operating Capacity
The maximum output or productivity level that a company can achieve using its current resources under normal working conditions.
Fixed Overhead Costs
Expenses that do not change with the level of production, such as rent or salaries of administrative staff.
Effect On Income
The impact of specific actions, events, or decisions on a company's net income or profitability.
Book Value
Book value is the net value of a company's assets as reported on the balance sheet, calculated by subtracting liabilities from the total assets.
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