Question 1

The total quality management (TQM) approach originated in:
A) Germany
B) USA
C) Japan
D) South Korea

Accepted Answer

The Total Quality Management (TQM) approach primarily originated in Japan post-World War II, as part of Japan's efforts to rebuild its economy. It was significantly influenced by quality management ideas from the United States, but it was in Japan where these concepts were fully integrated into management practices and led to significant improvements in quality and productivity in various industries.

Question 2

The statement concerning total quality management (TQM) that is not true is:
A) it promotes an organisation-wide philosophy
B) the units cost of the product or service generally increase slightly as quality is improved
C) TQM is an important part of lean accounting
D) none of the statements is untrue. i.e. all are true statements

Accepted Answer

Total Quality Management (TQM) aims at reducing waste and improving efficiency, which typically results in the reduction of the unit cost of products or services, not an increase.

Question 3

Under a value chain approach to quality management, product inspections are an example of which category of quality costs?
A) Internal activities
B) Prevention activities
C) Appraisal activities
D) External activities

Accepted Answer

Product inspections are considered appraisal activities, as they are part of the efforts to evaluate the quality of products to ensure they meet certain standards before they are delivered to the customer.

Question 4

MNL's accounting information system reported warranty repair and product replacement costs totalling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?
A) External activity costs
B) Appraisal activity costs
C) Internal activity costs
D) Prevention activity costs

Accepted Answer

Warranty repair and product replacement costs are considered external failure costs because they occur after the product has been delivered to the customer and represent costs associated with failing to meet quality standards externally.

Question 5

Activities performed under a value chain approach to quality management, to insure defect-free production, such as routine equipment maintenance or quality training, represent which category of quality costs?
A) Internal activities
B) Prevention activities
C) External activities
D) Appraisal activities

Accepted Answer

Prevention activities are proactive measures taken to prevent defects from occurring in the first place, including routine equipment maintenance and quality training.

Question 6

The statement that is incorrect concerning total quality management is:
A) there is an emphasis on process management
B) there is extensive employee participation and training
C) there is a strong customer focus
D) none of the statements is incorrect, i.e. all are correct statements

Accepted Answer

All the options (A, B, and C) correctly describe aspects of total quality management (TQM), which emphasizes process management, extensive employee participation and training, and a strong customer focus.

Quiz 15: Strategic Management Control: a Lean Perspective

The total quality management (TQM) approach originated in:

The statement concerning total quality management (TQM) that is not true is:

Under a value chain approach to quality management, product inspections are an example of which category of quality costs?

MNL's accounting information system reported warranty repair and product replacement costs totalling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?

Activities performed under a value chain approach to quality management, to insure defect-free production, such as routine equipment maintenance or quality training, represent which category of quality costs?

The statement that is incorrect concerning total quality management is: