This lesson shows how CNC programs use tool compensation commands like G41 to adjust the tool path for the tool radius. The program starts by activating compensation, moves the tool with compensation applied, then cancels compensation with G40 before ending. The execution table traces each step, showing tool position and compensation status. Key moments explain why cancelling compensation is important and how errors happen if compensation is not applied or cancelled correctly. The visual quiz tests understanding of tool position during compensation and the importance of cancelling compensation. The quick snapshot summarizes the commands and rules for compensation to prevent errors.