Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 68

As indicated in Exhibit 17.2 and the accompanying discussion, a comprehensive framework for the management and control of quality will likely include both financial and nonfinancial data. Explain the primary role of each in terms of the overall quality-management process. For example, is financial information likely to be more relevant to managers or operating personnel?

Step 1 of 2

Quality is an attribute of a good which helps in measuring and judging the performance of the good. Quality as a concept is many times subjective in nature and depends upon the perception and judgement of the person. It is associated with customer satisfaction with respect to experience of using the good. It can be measured as difference between and expected and actual performance of good.