Variable Pay Is

question 140

Multiple Choice

Variable pay is:

• A)compensation based on the reduction of the company's variable costs.
• B)compensation that varies based on the number of hours an employee works.
• C)a payment made to a supplier in multiple installments.
• D)compensation awarded on the basis of individual results or performance.
• E)a payment made to employees based on willingness to work overtime.

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Definitions:

Total Fixed Costs

The sum of all costs required to produce any level of output that do not change with the quantity produced, such as rent or salaries.

Workers

Individuals engaged in physical or mental activities aimed at producing goods or providing services in exchange for wages.

AVC

Stands for Average Variable Cost, which is the per-unit cost of production excluding fixed costs, changing with the level of output.

Output

The total amount of goods or services produced by a person, machine, or industry.