Real Wages Refers To

question 40

Multiple Choice

Real wages refers to:

• A) salary and wages remaining after deducting the expenses incurred to earn the wage, such as child care expenses
• B) salary and wages that have been adjusted for inflation
• C) total compensation including both wages and benefits
• D) salary and wages that have not been adjusted for inflation
• E) salary and wages that have been adjusted for the effort required

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Definitions:

External Failure Cost

Costs incurred when a defective product or service is discovered after delivery to the customer, including returns, repairs, and lost sales.

Prevention Costs

Costs incurred to prevent defective units before they are produced. For example, reengineering products or production processes.

Appraisal Costs

Costs associated with the evaluation and inspection of products or services to ensure they meet quality standards.

Internal Failure Costs

Costs incurred when a defect is discovered before being received by a customer.