Total Quality Management (TQM)is

question 123

Multiple Choice

Total quality management (TQM) is:

• A) comparing a product's actual functioning to their requirements to determine value.
• B) the process that involves everyone in the organization focusing on the customer to continually improve product value.
• C) the method used to transform inputs into outputs.
• D) the perceived benefit of a product, used by customers to determine whether or not to buy the product.

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Definitions:

Flexible Budget Performance Report

A report comparing actual costs and revenues with budgeted figures adjusted for actual levels of activity, to evaluate performance.

Budgeted Performance

Anticipated financial and operational results over a specific period, based on budgets, used as a benchmark for comparison with the actual performance.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Units of Production

A method of depreciation that calculates the expense based on the actual usage or production levels of an asset, rather than time.