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:

Quick Ratio

A liquidity metric that indicates a company's capacity to pay off its short-term liabilities with quick assets (cash, marketable securities, and receivables).

Interest Calculations

The process of determining the cost of borrowing money or the gain on saved or invested money over a period, typically expressed as a percentage of the principal.

Journalize

The process of recording transactions in a journal or diary in accounting, which includes the date, accounts affected, and amounts, followed by a brief description of the transaction.

Temporary Investments

Investments not intended to be held for a long term, such as stocks or bonds, purchased with the intention of selling in the near future.