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What Type of Pay System Rewards Employees for Partially or Completely

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What type of pay system rewards employees for partially or completely attaining a predetermined work objective?


Definitions:

Explicit Costs

Payments made directly to individuals or entities in the operation of a business, including salaries, rental fees, and costs of materials.

Average Variable Cost

The total variable cost divided by the number of units produced, representing the average cost per unit of output that varies with production.

Average-Fixed-Cost Curve

A graphical representation that shows the average fixed costs of production at different levels of output.

Average-Total-Cost Curve

Graphical representation that shows how the average total costs of production change as the quantity of output is altered.

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