A method of measuring quality costs

A method of measuring quality costs

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Article ID: iaor199221
Country: United Kingdom
Volume: 29
Issue: 9
Start Page Number: 1785
End Page Number: 1794
Publication Date: Sep 1991
Journal: International Journal of Production Research
Authors: ,
Keywords: quality & reliability
Abstract:

Improving product quality is now at the top of a manufacturer’s priority list. Yet quality cost does not appear in accounting records because it is relatively new and unstructured, making it difficult to measure objectively, and because traditional accounting is too outdated to accommodate it. This paper illustrates a method of deriving a function of quality cost, which requires cooperation among departments such as accounting, quality control, and manufacturing.

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