Fredrick Works in Human Resources Management in an Industry That

question 204

Multiple Choice

Fredrick works in human resources management in an industry that is experiencing an over-supply of qualified workers.His company has been particularly hard-hit by the over-supply because current government regulations have mandated that one of the products his company produces can no longer be sold in the United States.Fredrick must recommend to management ways to reduce the company's workforce.He has several options at his disposal,which of the following would be the most desirable option to utilize to reduce the workforce?

• A) Layoffs
• B) Attrition
• C) Temporary layoffs
• D) Termination

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Definitions:

Total Variable Cost

The sum of all costs that vary with output level, including costs of direct materials, direct labor, and other expenses that increase or decrease as production volume changes.

Variable Cost

Costs that change in proportion to the level of output in the production process.

Marginal Product

The marginal product is the additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.

Average Variable Cost

The total variable costs divided by the quantity of output produced, indicating the variable cost per unit of output.