Question

answer these questions in very short essay

1)Explain the use of financial ratios as a control method.

2)Describe the benefits of quality management.

3)Describe the costs of quality management.

Answer 1

1) Financial ratios are relationships which we get from a company's financial information and basically used for comparison purposes. Examples include such as return on investment (ROI), return on assets (ROA), and debt-to-equity. These ratios are the result of dividing one account balance to another. These account balances are found on one of the company's financial statements—balance sheet, income statement, cashflow statement, and/or statement of changes in owner's equity.

2) Total quality management (TQM) is a generally improving the operations of a business. This is done using different applications of rigorous process analysis by employee and business partner.

Benefits : a) Cost reduction.

b)Customer satisfaction.

c)Defect reduction.

3) Cost of quality (COQ) is a methodology which allows an organization or company to determine in which extent its resources are used to prevent poor quality, that appraise the quality of the organization's products or services, and the result from internal and external failures. Different types of cost are internal failure cost,external failure cost,appraisal cost,prevention cost.