Quality Management Systems Use Many Nonfinancial Measures,such as the Number

question 82

True/False

Quality management systems use many nonfinancial measures,such as the number of customer complaints and the volume of incoming customer-service phone calls,as a means to measure success or failure.

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Definitions:

Positive Externality

A benefit received by someone who had nothing to do with the activity that generated the benefit, often leading to an underproduction of the good/service in a free market.

Compensation

The complete sum of financial and non-financial compensation given to a worker by their employer in exchange for the work carried out as needed.

Marginal Seller

A seller who is indifferent about selling at the current market price and might leave the market if prices decrease.

Cost

Cost is the amount of money required to purchase, produce, or maintain something, encompassing both direct expenses and indirect expenditures.