OPERATIONAL AND MANAGEMNENT LEVEL CONTROL ASSIGNMENT

Discussion Reply on the below thread: 1 page and 2 peer reviewed articles from (2017-2021) please use APA 7 and include the DOI in reference area: Examining the relationship between Cost of Quality and Activity Based Costing (1paragraph) and Time Period of Analysis single versus multiperiod perspective (1 paragraph) with how it affects strategic allocation of financial resources (1 paragraph). 1 page and 2 peer reviewed articles from (2017-2021) please use APA 7 and include the DOI in reference area:
All resources need to be done in this format as an example : Drollinger, T., Comer, L. B., & Warrington, P. T. (2006). Development and validation of the active empathetic listening scale. Psychology & Marketing, 23(2), 161-180. https://doi.org/10.1002/mar.20105

ANSWER

Operational and Management Level Control

Cost of quality can be used as a methodology that will enable a business or an organization to estimate how it will spend or utilize its resources to prevent producing low or poor quality goods and services that may result from faults in the business. The cost of quality intersects with Activity Based Costing (ABC) in many ways. This paper will discuss the relationship between the cost of quality and activity-based costing.

One of the ways through which the cost of quality and activity-based quality are related is that they are directly proportional (Gunasekaran & Subramanian 2019). When the cost of quality increases at any instant, the costs of every activity in a business increase; the wages per worker and the salary per worker increases. When the cost of quality decreases the cost of every activity in a business or organization relatively decreases (Gunasekaran & Subramanian 2019). As result, the cost quality and the activity-based quality are directly proportional.

The single period time of analysis uses each cash flow at a time to value the income as well as stock in a business (Lin et.al 2019). This method is not preferred by many businesses because it is independent of each cash flow and creates complexity in financial calculations (Lin et.al 2019). Many businesses prefer a multi-period perspective because it involves all the cash flows in a business. This creates a good relationship between all the activities in a business (Lin et.al 2019).

The method of analysis affects the strategic allocation of resources in a business (Lin et.al 2019). The single period time of analysis allocates resources to each activity in a business independently and this may result in some business activities lacking resources (Lin et.al 2019). The multi-period perspective is good in allocating resources because it does equally and dependently. This makes all activities in a business run smoothly (Lin et.al 2019).

In conclusion, a change in any activity in a business or an organization causes changes in other activities that are related.

References

Gunasekaran, A., Subramanian, N., & Ngai, W. T. E. (2019). Quality management in the 21st-century enterprises: Research pathway towards Industry 4.0. https://doi.org/10.1016/j.ijpe.2018.09.005

Lin, Y. H., Chen, C. J., & Lin, B. W. (2017). The influence of strategic control and operational control on new venture performance. Management Decision. https://doi.org/10.1108/MD-07-2015-0324