In Viewing the Three Core Principles of TQ,a Focus on Customers

question 74

True/False

In viewing the three core principles of TQ,a focus on customers is clearly vital to small enterprises.

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Definitions:

Flexible Budget

A budget that adapts or changes according to fluctuations in activity levels or volume.

Fixed Costs

Costs that do not vary with the level of production or sales over a certain range, such as rent, salaries, and insurance.

Activity Level

A measure of the volume of production or operations, which can impact costs and profitability within a business.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.