Employee Evaluation After Single Performance Measure And Cost Drivers In Activity-based Costing


1. Which one of the following statements describes the most likely effect on employees who are evaluated on the basis of a single performance measure?

A. Leads to greater job satisfaction for employees as there is a greater role clarity

B. Leads to employees having a better understanding of work requirements.

C. Leads to employees focusing their attention on only one aspect of their work

D. Leads to increased performance as employees’ attention will be focused on a specific aspect of their work.

2.  In activity-based costing, cost drivers:

A. Provide a basis for the transfer of indirect (overhead) expenses to cost pools

B. Provide a basis for the transfer of indirect (overhead) expenses to units of output

C. Help to drive down indirect (overhead) costs

D. Calculate the relative indirect (overhead) costs for different departments.


These multiple choice questions belong to Corporate Strategy and the 1st question discusses about the effect on employees evaluated after single performance measure and the 2nd question is about cost drivers in activity-based costing.

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