Article review 2 Essay Example | Topics and Well Written Essays - 500 words

Article review 2 - Essay Example rules and concepts that govern the field of accounting as the basic accounting  principles and guidelines that form the basis for Financial Accounting Standards Board (FASB) and the Generally Accepted Accounting Principles (GAAP). The article notes the requirement and importance of using the generally accepted accounting principles in the preparation of financial statements. The GAAP ensures professionalism, consistency,  and uniformity in accounting. However, the article notes that GAAP have become more complex over the years because financial transactions have become more complex. The article recognizes ten basic accounting principles and guidelines that form the basis of the Generally Accepted Accounting Principles. They include the economic entity assumption, monetary unit assumption, time period assumption, cost principle, full disclosure principle, going concern principle, matching principle, revenue recognition principle, materiality, and conservatism principle (Accounting Coach 1). I agree with the article’s position and insight on the basic accounting principles and guidelines for various informed reasons. Indeed, all financial statements must comply with the set rules and standards to reflect professionalism, consistency, and uniformity in accounting. Public organizations must present financial statements to the shareholders and directors quoting the Generally Accepted Accounting Principles used to reach at such financial positions. The use of such principles is significant in accounting since the operations, shareholders, and directors of public companies emanate from all over the world hence the need for a standardized code of accounting to represent the diverse backgrounds of the concerned parties. This is also significant in comparing different public companies. The ten basic accounting principles and guidelines relevantly encompass all the financial aspects and needs of any business entity, big or small. The points discussed in the article,

Total Quality Management Essay Example | Topics and Well Written Essays - 1000 words

Total Quality Management - Essay Example It is implied that cost of quality needs to be taken into consideration before deciding on a firm’s plans for ensuring the quality of its products/ services. In other words, extremely high cost of quality can threaten a company’s health either in the short or the long term. Cost of quality can be used as an indicator of a company’s health. This fact is verified through the following example: a series of firms operating in the manufacturing industry of Malaysia decided to establish a Cost of Quality (COQ) Reporting System (Rasamanie and Kanagi 243). It was expected that this initiative would help these firms to improve their performance (Rasamanie and Kanagi 247). Indeed, the implementation of the above system resulted to a series of important benefits in regard to these firms’ performance. The benefits achieved for the firms participating in this project are presented in Table 1 below. Table 1 – Benefits resulted because of the implementation of the COQ Reporting System in manufacturing firms in Malaysia (Rasamanie and Kanagi 247) It is clear from the data presented in Table 1 above that the implementation of COQ Reporting System in Malaysian manufacturing firms enhanced their performance. ... The potential use of quality cost for measuring a company’s health can be understood if referring to the elements of cost of quality. Haryanto (186) noted that the cost of quality includes four different types of costs: ‘Prevention cost, Appraisal cost, Internal Failure cost and External Failure Cost’ (Haryanto 186). These costs, each of which incorporates a series of sub-costs (Table 2 below), can be used for identifying the performance of a company in regard to its various sectors/ departments. In this way, the cost of quality helps to measure and evaluate a company’s health. If costs related to one or more of the firm’s operations are high this fact is considered as a negative indicator for the company’s health. Table 2 – Elements of Quality Costs (Blocher, Chen and Lin 176 in Haryanto 186) The relationship between quality of cost and a company’s health is reflected in the Acceptable Quality View, an approach for deciding on a firm’s optimum quality cost (Haryanto 188-189). The Acceptable Quality View is based on the assumption that ‘there is a trade – off between control costs and failure costs’ (Haryanto 189). In a healthy company, ‘failure costs would be reduced as the control costs are increased’ (Haryanto 189). The above trend is presenting in Graph 1 below. Graph 1 – AQV – Quality costs graph (Haryanto 189) Question 2 A customer – driven quality circle would include the parts indicating in Graph 2 below. The parts of the graph are based on the study of Reis and Pena (2000). According to the above researches, a customer driven organization focuses on the creation of ‘a customer-driven organizational culture’ (Reis and Pena 43). In this context, a customer