Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 79

As explained in the chapter, many organizations today are embracing the notion of total quality management (TQM), that is, they are attempting to secure competitive advantage through quality across all areas of the value chain. Discuss the role that management accounting can play to support the goal of TQM. (Hint: Use Exhibit 17.2 as a reference point.)

Step 1 of 2

Total Quality Management i.e. TQM is a method or management approach to continuously improve and control the quality of the product. Under this approach, everyone in the firm needs to understand the importance of quality, and customer expectation, and work together to fulfill those expectations. TQM basically works on internal control of management on procedures which are directly or indirectly related to quality of production.