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The question is from June 2012
the production director at an engineering company believes that the way to persistently increase market share in the long term is the focus on quality and is hoping to introduce a total quality management approach.the Finance Director also shares this view and said that standard costing with no longer have a place within the organisation if tqm is introduced.
Discuss the view that there is no longer a place for standard costing if tqm if introduced.
Cud u pls explain in short the ans coz the ans in the kit in too big to understand properlyThe two main points are firstly that standard costing (and therefore variance analysis) focuses on cutting costs, whereas TQM focuses on improving quality – these two aims may conflict with each other. The second is that as changes are made under TQM, then standard cost would keep changing which would make it difficult to apply.
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