The Circular Flow Diagram Shows That the Flow of Payments

question 298

True/False

The circular flow diagram shows that the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services.

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Definitions:

Quality Training

Educational programs or sessions aimed at enhancing the skills and knowledge of employees to maintain or improve product or service quality.

Quality Costs

Expenses associated with preventing, detecting, and correcting defective work in products or services.

Quality Cost Report

A quality cost report compiles all expenses related to ensuring products or services meet quality standards, including prevention, appraisal, and failure costs.

External Failure

The costs incurred when a product fails to meet quality standards after it has been delivered to the customer, including returns, repairs, and lost sales.