An Organisation Is Undergoing a Major Change to the Way

question 56

Multiple Choice

An organisation is undergoing a major change to the way it does business,redesigning business processes and the use of IT within the processes.One of the suggested change approaches was TQM.In this case:

• A)TQM would be ideal because it allows for all employees to offer suggestions and be involved in the changing of the organisation.
• B)TQM would be ideal because its incremental approach to organisational change means that the change process would be well managed.
• C)TQM would not be ideal because its incremental approach would mean that change would take a large amount of time.
• D)TQM would not be ideal because its incremental approach is suited to gradual change rather than large scale change.

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Definitions:

Labour Rate Variance

Labour rate variance is the difference between the actual hourly wage paid to workers and the standard wage rate expected, indicating variations in labor cost.

Material Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Standard Costing

An accounting method that uses predetermined costs for product costing, performance evaluation, and decision making.

Labour Efficiency Variance

A metric that measures the difference between the actual labor hours used in production and the standard or expected hours, often indicating labor performance.