If a Small Plumbing Company Is Installing a TQM Program

question 30

Multiple Choice

If a small plumbing company is installing a TQM program, management should be aware that

• A) quality must become a very important goal of the entire business.
• B) ISO 9000 will be the controlling criterion.
• C) costs cannot be allowed to limit quality goals.
• D) acceptance sampling may be necessary.

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Definitions:

Transaction Recorded

The act of documenting a business transaction in the company's accounting records.

Debit

A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet, or in the context of personal banking, a withdrawal from an account.

Credit

An accounting entry reflecting an increase in assets or decrease in liabilities on a company's balance sheet or an entry on the right side of an account.

Drawing

In accounting, refers to the withdrawal of cash or goods by the owner from a business for personal use.