Which of the Following Will Cause the Average Fixed Cost

question 114

Multiple Choice

Which of the following will cause the average fixed cost curve of making cigarettes to shift?

• A) a $5 million penalty charged to each cigarette maker
• B) a $1 per pack tax on cigarettes
• C) a $3 per hour wage increase
• D) An increase in the demand for cigarettes.

---

Definitions:

Forced Distribution

A performance management system where employee evaluations are distributed along a predetermined curve, often requiring managers to rank employees against each other.

Performance Appraisal Systems

Formal systems used within organizations to evaluate employee performance, providing feedback, documenting accomplishments, and identifying areas for improvement.

Performance Standards

Established criteria or benchmarks used to measure and evaluate the quality and effectiveness of work performance.

Competency Matrix

A list of the level of each competency required for each of a number of jobs.