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hi sir
I dont understand why the following statements regarding standard costing and TQM are false.?
(i) They focus on assigning responsibility solely to senior managers
(ii) They work well in rapidly changing environments(1) There is nothing in either standard costing or in TQM that assigns responsibility only to senior managers. TQM in particular is a philosophy that needs to be adopted by everyone in the company.
(2) In a rapidly changing environment, standard costs would need to be changed very often which would both make it impractical and also make them much less useful.
(Although this question could be asked in Paper PM, it is less likely – it is much more a Paper MA (was F2) question.)
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