Every Year Managers Are Given Targets for Categorizing Their Employees

question 15

Multiple Choice

Every year managers are given targets for categorizing their employees' performance at the end of the year.The managers are allowed 5 percent at the top,80 percent in the middle and then 15 percent at the bottom.This company is using

• A)forced distribution.
• B)the high/low ranking system.
• C)paired comparison.
• D)alternation ranking.
• E)simple ranking.

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Definitions:

Cost of Goods Sold

The costs incurred directly from the production of goods a company offers for sale, which include material and labor expenses.

Direct Expenses

Direct expenses are costs that can be directly traced to a specific cost object, such as a product, department, or project.

Departmental Contribution Margin

The difference between sales revenue and variable costs for a specific department, indicating its contribution to the overall profit.

Contribution Margin

The amount remaining from sales revenue after variable costs are subtracted, indicating how much contributes towards covering fixed costs and generating profit.