Based on His 14 Points, Deming Is a Strong Proponent

question 45

Multiple Choice

Based on his 14 points, Deming is a strong proponent of

• A) inspection at the end of the production process.
• B) an increase in numerical quotas to boost productivity.
• C) looking for the cheapest supplier.
• D) training and knowledge.
• E) short-term thinking.

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Definitions:

Operating Efficiency

A measure of a company's ability to minimize costs and maximize output during its operations.

Productive Capacity

The maximum output a company can produce using its existing resources in a given period, without sacrificing quality.

Units-of-Activity Method

A depreciation method that allocates the cost of an asset over its useful life based on units of production or usage rather than time.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during the period.