Question 2 Volo Playa is a car production company. Volo Playa uses a system of standard costing to set its budgets, Budgets are set annually by the Finance department and approved by the Board of Directors of Volo Playa. The Finance department prepares variance reports each month for review at the Board of Directors meeting, where actual performance is monitored by comparison to budgeted figures. A new Finance Director has recently joined Volo Playa from a competitor organisation where there was a Total Quality Management culture. The new Finance Director of Volo Playa is keen to discuss the implementation of Kaizen costing at the next meeting of the Board of Directors. The new Finance Director would like to review the current planning and control system at Volo Playa with a view to making changes so that it could support Kaizen costing concepts. Required: (a) Explain TWO basic principles of Total Quality Management (4 marks) (b) Explain THREE changes required to PB's planning and control system to support the adoption of Kaizen costing concepts. (6 marks)