Which of the Following Statements About Total Quality Management (TQM)

question 200

Multiple Choice

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

• A) Before widespread adoption of TQM, most firms assumed that production defects were an inevitable part of mass production.
• B) Japanese producers of cars, electronics and cameras showed that production defects were not inevitable.
• C) From a TQM perspective, the cost of lost customers is a minor consequence of poor quality.
• D) From a customer's point of view, getting a defective product and having to complain about it is inconvenient.
• E) TQM methods have been applied to implementation problems other than manufacturing.

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Definitions:

Long-run Profits

The potential earnings of a business over a period long enough for all inputs to be adjusted, considering the firm's ability to enter or exit markets.

Factor Price

The price at which factors of production (land, labor, capital) are bought and sold.

Production Function

A mathematical model that describes the relationship between inputs used in production and the resulting output.

Profit-maximizing

The process or strategy of adjusting production and operations to achieve the highest possible profit under given conditions.