Explain the Relevance of TQM in Decision Making and Controlling

question 62

Essay

Explain the relevance of TQM in decision making and controlling processes.

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Definitions:

Engineered

The process of designing, constructing, and testing structures, materials, and systems based on scientific principles.

Operating Leverage

An indicator of the extent to which increases in revenue lead to increases in operating profit, showing the level of fixed expenses within the financial framework of a business.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Forecasting Risk

The potential for future revenues or earnings to deviate from projected amounts due to variables that affect demand, supply, and pricing.