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Showing posts from June, 2021

TQMA - Total Quality Management Accounting

By improving quality, companies will decrease expenses as well as increase Productivity and market share. -W. Edward Deming The purpose of writing this blog post is to equip the students with the basic concept of Management Accounting Role in the success of Total Quality Management (TQM), that focuses on customer satisfaction, and ensures continuous process improvement to provide defect free high quality and cost effective Products or services, through involvement of everybody in the organization. This helps in improving overall productivity and performance of the organization.  How Management Accounting supports TQM? The Management Accounting is a systematic methodology that supports TQM in determining the cost of quality (COQ) through its evidence – based cost analysis and decision making. The guidelines for future cost effective activities are established on the basis of quality associated cost analysis of existing expenses. Why cost of quality is important (COQ)? As already descri