Two Specific Forms of Individual-Based Pay-For-Performance Programs

question 80

Multiple Choice

Two specific forms of individual-based pay-for-performance programs

• A)stock options and gainsharing.
• B)piece-rate wages and gainsharing.
• C)profit-sharing and gainsharing.
• D)variable-pay programs and piece-rate wages.
• E)piece-rate wages and bonuses.

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Definitions:

AVC

Average Variable Cost refers to the total variable costs per unit of output in economics, helping businesses analyze production expenses.

ATC

Average Total Cost, which is the total cost per unit of output produced, calculated by adding all production costs and dividing by the number of units produced.

Marginal Output

The increase in output resulting from a one-unit increase in the level of input, while holding other inputs constant.

Variable Cost

Expenses that change in proportion to the activity or production level of a business; for example, costs for raw materials that increase as more goods are produced.