List and Explain the Need for the Two Primary Principles

question 76

Essay

List and explain the need for the two primary principles of total quality management (TQM).

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Definitions:

Operating Cycle

The period it takes for a business to buy inventory, sell it to customers, and collect the cash from these sales.

Credit Sales

Revenues earned by selling goods or services that are paid for over time under agreed payment terms, rather than paid in full upfront.

COGS

Acronym for Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Inventory Turnover Rate

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.