The Three Principles That Characterize TQM Are Continuous Improvement, Customer

question 70

Multiple Choice

The three principles that characterize TQM are continuous improvement, customer focus and satisfaction, and ____.

• A) teamwork
• B) organizational dialogue
• C) the equity theory
• D) autonomy
• E) competitive advantage

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Definitions:

Annual Output

The total production or quantity of goods and services produced by a company or economy in one year.

Economies of Scale

The cost advantage achieved by an increase in production, leading to a decrease in the average cost per unit through efficient allocation of resources and spreading of fixed costs.

Cost-output Elasticity

The ratio of the percentage change in cost relative to the percentage change in output, indicating how costs change with output levels.

Marginal Cost

The cost associated with producing one additional unit of a product.