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: | Hsu Lie-Fern, Son Young K. |
Keywords: | quality & reliability |
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relatively new and unstructured, making it difficult to measure objectively, and because traditional accounting is too outdated to accommodate it.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.