Total Quality Management

question 25

Multiple Choice

Total quality management:

• A) is based on the ideas of Frederick Taylor.
• B) gives managers total responsibility for achieving quality goals.
• C) gives all employees the responsibility for achieving quality goals.
• D) was first successfully implemented in the United States.
• E) is all of these.

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Definitions:

Margin of Safety

This metric indicates the difference between actual or projected sales and the break-even sales point, highlighting the buffer a business has before it incurs a loss.

Operating Leverage

A financial metric that indicates how a company's operating income reacts to a change in sales volume, showing the degree of fixed versus variable costs.

Sales Increase

A rise in the amount of goods or services sold, often measured as a percentage increase over a previous period.

Contribution Format

A method of income statement presentation that stresses the contribution margin, which is sales revenue minus variable costs.