Which of the Following Is True About Total Quality Management

question 67

Multiple Choice

Which of the following is true about total quality management?

• A) Output goals and targets should include only numbers.
• B) The number of steps to assemble a product should be increased.
• C) Employees should be asked for suggestions about improvements.
• D) Incentives such as bonus pay and promotional opportunities should be eliminated.
• E) A just-in-case inventory system should be introduced.

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Definitions:

Selling Price

The amount of money for which a product or service is sold to customers.

Contribution Margin Ratio

A financial metric that measures how effectively a company can cover its variable costs with revenue, calculated as contribution margin divided by sales revenue.

Variable Cost Per Unit

The cost that changes in proportion to changes in the level of output or activity.

Income From Operations

The profit realized from a business's ongoing core business operations, excluding deductions of interest and taxes.