Question

Briefly describe:

Investigating and assessing the impact of cost management quality (CMQ) on the:

(a) effectiveness of the internal control operating within the organization.

(b) reliability of the strategic decision making in an organisation.

(c) performance and position of the organisation in the long run

Answer 1

Cost management quality is essential for bringing various process improvement initiatives that can prevent poor quality issues, appraise the products and services, organization also can monitor various internal and external failure cost, now let me Investigate and asses the impact of cost management quality (CMQ) on the:

1. Effectiveness of the internal control operating within the organization:

As Internal control takes quite big role within the organization, cost management quality need to influence that internal control process, as with the internal control and monitoring system, we can prevent various defects to come out, we can prevent various poor quality issues, hence, cost management quality must focus on various preventive activities that will bring better quality products and services, hence, cost drainage can be reduced as poor quality production gets stopped through internal control process.

2. reliability of the strategic decision making in an organization:

strategic decision making process can bring sustainability culture and outcome within the organizational environment, here, with reliable strategic decision making process, we can prevent various quality issues, we can also implement various training programs, that further will consider better impact of cost management quality, and overall product and service cost can be minimized, as every product cost includes life time cost like operating cost and maintenance cost, hence, we need to consider reliability of the strategic decision making that improve quality level of the products and services.

3. performance and position of the organization in the long run:

further, organization needs to perform and take better position in long run, here, they should build standard and follow them accordingly, they should also consider policies, practices, guidelines, standard operating procedures, operators method sheet, etc, that will help organization to prevent poor quality related issues, hence, cost management quality has greater impact on the performance and position of the organization in the long run, every organization should follow various guidelines, standard, compliances that can reduce various future risks and many bad quality issues will not emerge, as these issues are prevented from the beginning, hence, organization should give higher priority to following the policies, practices and guidelines to bring superior quality products.