Costs of Controlling Quality Include Prevention Costs and Internal Failure

question 49

True/False

Costs of controlling quality include prevention costs and internal failure costs.

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Definitions:

Performance-contingent Basis

A system where rewards or consequences are applied based on the level of performance achieved, incentivizing certain behaviors or outcomes.

Under-reward Inequity

A perception among employees that their rewards do not match the effort and contributions they have made, leading to dissatisfaction.

Outcomes-to-Inputs Ratio

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.

Expectancy

A person’s belief that working hard will result in high task performance.