Performance Management

question 15

Multiple Choice

Performance management:

• A) Is a process that enables the MNE to evaluate and continuously improve individual,subsidiary unit and corporate performance against set goals and targets
• B) Is the evaluation of an employee performance and a vehicle to set performance goals
• C) Is the process of evaluating business opportunities and planning for new investments
• D) Is the process of setting goals for future performance by MHE employees

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Definitions:

Variable Expenses

Costs that change in proportion to the activity of a business.

Sales Revenues

The income received by a company from its sales of goods or the provision of services.

Absorption Costing

This refers to an accounting strategy that comprehensively adds the costs of direct materials, direct labor, and both varying and fixed overheads into the total cost of manufacturing a product.

Variable Costing

A pricing approach that incorporates solely the variable production expenses—such as direct materials, direct labor, and variable manufacturing overhead—into the unit cost of a product.