Chapter 18, Problem 7BTN

To determine

1)

Introduction:

Cost of Goods Manufactured:

• The Schedule of Cost of Goods Manufactured is used to compute the cost of producing goods for a particular period.

• It comprises of Cost of Materials, Labor and Overhead attributable to goods manufactured.

• Cost of goods manufactured is the total cost of producing goods that are later sold to realize revenues. It includes direct and indirect materials, labor and overhead.

To Determine:

Categories of Manufacturing Costs and examples.

To determine

2)

Introduction:

Total Quality Management

• Total Quality Management is a management approach that advocates integration of all elements of the functions of the organization to meet organizational goals and customer requirements.

• Total Quality Management requires constant evolution and monitoring of organizational processes and encourages synergistic alliances of organizational functions to lead to better fulfillment of organizational objectives.

• Some activities that form part of the Total Quality Management philosophy are Commitment by all levels of management, Better inventory management, Employee accountability and empowerment etc.

To Determine:

Goals of Total Quality Management Process