An Employer Experiencing High Turnover and Seeking to Reduce Pension

question 25

Multiple Choice

An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:

• A)full vesting after three years.
• B)full vesting after six years.
• C)full vesting after seven years.
• D)partial vesting after two years.

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Definitions:

Average Total Cost

The average expense for each unit of output, calculated by dividing the overall production cost by the total number of units produced.

Average Fixed Cost

The cost that remains constant per unit of output as total production increases or decreases.

Minimum Point

The lowest point on a curve, often related to economic graphs such as cost curves, indicating the least quantity of cost or effort.

Marginal Cost

The additional cost incurred from producing one more unit of a product or service.