Which of the Following Statements Is True About Total Quality

question 82

Multiple Choice

Which of the following statements is true about total quality management (TQM) ?

• A)There are three steps in the TQM program.
• B)Suggestions for improvements come from lower-level managers.
• C)All managers in every function must cooperate and develop goals for the organization.
• D)Adding steps for the production process increases quality.
• E)A just-in-time inventory is not compatible with the program.

Comprehend the principle and benefit of activity-based costing in allocating factory overhead.

Identify appropriate allocation bases for different factory overhead activities.

Determine the factory overhead to be allocated per unit under activity-based costing.

Evaluate the advantages of using multiple production department factory overhead rates over a single plantwide rate.

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Definitions:

Other Comprehensive Income

Income that is not included in net income and includes items that are not realized or not a result of daily operations, such as foreign currency translation adjustments.

Revaluation Method

An accounting technique that involves adjusting the book value of an asset to reflect its current fair market value.

Intangible

Assets that lack physical substance but have value due to their intellectual property or other non-physical qualities, such as patents, trademarks, and goodwill.

Amortisation

The systematic allocation of the depreciable amount of an intangible asset over its useful life.