Assume Your Club Makes and Sells Boxes of Chocolate Every

question 101

Essay

Assume your club makes and sells boxes of chocolate every year as a fundraising project for Valentine's Day. As the current director of projects, you are interested in improving the quality of the service and the product your club offers. You have just learned about continuous improvement. Discuss how your club could use JIT, TQM, and ABM to achieve improved quality.
Note: Student answers will vary considerably depending on their approach. However, each answer should indicate that the student has a grasp of what JIT, TQM, and ABM mean and how each would impact an organization's attempt to achieve continuous improvement. A sample answer is given below.

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Definitions:

Overstated

The description of financial statements or figures that have been reported at amounts higher than is factual or realistic.

Understated

Understated refers to financial information that is reported at a figure less than the actual value, inadvertently decreasing net income or asset values.

Replacement Cost

The current market price it would cost to replace an asset with a similar new asset.

Market Value

The present cost at which a service or asset is available for purchase or sale on an open market.