Chapter 1 Question and answers
verified to pass 2026
value added - correct answer ✔the net increase created during the transformation of inputs into final
outputs
total quality management (TQM) - correct answer ✔philosophy that seeks to improve quality by
eliminating causes of product defects and by making quality the responsibility of everyone in the
organization
time-based competition - correct answer ✔an organizational strategy focusing on efforts to develop
new products and deliver them to customers faster than competitors
sustainability - correct answer ✔a trend in business to consciously reduce waste, recycle, and reuse
products and parts
tactical decisions - correct answer ✔decisions that are specific and short-term in nature and are
bound by strategic decisions
supply-chain management (SCM) - correct answer ✔management of the flow of materials from
suppliers to customers in order to reduce overall cost and increase responsiveness to customers
strategic decisions - correct answer ✔decisions that set the direction for the entire company; they are
broad in scope and long-term in nature
service organizations - correct answer ✔Organizations that primarily produce an intangible product,
such as ideas, assistance, or information, and typically have high customer contact.