Which Term Listed Below Describes Costs Incurred When the Company

question 3

Multiple Choice

Which term listed below describes costs incurred when the company detects poor quality goods or services before delivery to the customer?

• A) Internal failure costs
• B) Value added activity
• C) Lean production
• D) External failure costs

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Definitions:

Compensable Job Factor

Elements of a job that are considered when determining pay, such as skill level, effort, responsibility, and working conditions.

Internal Equity

In compensation refers to comparisons made by employees to other employees within the same organization.

Classification System

The classification system for job evaluation attempts to group sets of jobs together into clusters, which are often called grades.

Job Evaluation

The process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization.