exam misc Flashcards
what is Tqm
Total Quality Management (TQM) is a management framework belief that an organization can build long-term success by having all its members – from low-level workers to its highest-ranking executives – focus on improving quality and, thus, delivering customer satisfaction
why does standard costing approach not work in a Tom environment 2 reasons
1.Standard costing focuses on controlling costs through fixed standards and variance analysis, which can discourage continuous quality improvements. It often emphasizes short-term financial targets, leading to decisions that might compromise long-term quality
- In contrast, TQM prioritizes flexibility, continuous improvement, and customer satisfaction, making standard costing’s rigid, cost-centric approach less effective. The short-term, cost-focused nature of standard costing doesn’t align well with TQM’s dynamic and quality-driven goals.
why is zero based budgeting better in public sector than private sector
it is far easier to put activities into decision packages in organisations which undertake set definable activities.
what is a material mix variance
Material Mix Variance is a measure used in cost accounting to assess the financial impact of changes in the proportion of different materials used in production compared to the standard or expected mix.
It indicates whether the actual mix of materials used in a production process has resulted in a cost that is higher or lower than what was planned.
difference between material yield and material usage variance
muv Interpretation: Indicates whether more or less material was used than planned. A favorable variance means less material was used, while an unfavorable variance means more material was used.
myv indicates whether the actual yield of finished goods from the materials used is more or less than expected. A favorable variance means higher efficiency (more output from the same material), while an unfavorable variance indicates lower efficiency.
what is sales mix variance
Sales Mix Variance is a measure used in sales and financial analysis to assess the impact of changes in the proportion of different products sold (the sales mix) on overall profitability.
It compares the actual sales mix to the budgeted or standard sales mix to determine how changes in the composition of sales affect total revenue and profit.
what is sales quantity variance
what is sensitivity analysis
Sensitivity analysis shows how different values of an independent variable affect a dependent variable under a given set of assumptions.
