Quiz 17: The Management and Control of Quality

Business

Management and Control of Quality Quality is explained as a term associated with customer satisfaction. It is the total level of satisfaction any customer gets from any organization's products or service. There are two components of quality- Design Quality and Performance Quality. There are various approaches to setting quality related expectations and among those alternatives one is the Cost of Quality (COQ) Reporting. It provides relevant cost and revenue data used for decision-making purposes. Discussion and analysis Investments in quality by any organization leads it to improve its business processes which in turn provide them results in the form of improved quality of good and services. Improvement in the quality of output reduces external failure cost as well as reducing the amount of inventory and lowering down total manufacturing costs. While on the other side, improvement in quality also results in an improved business image of the company in mind of consumers. This value of the organization in the mind of the consumers benefits the company in the form of higher selling prices and increased market share.

Management and Control of Quality Quality is explained as a term associated with customer satisfaction. It is the total level of satisfaction any customer gets from any organization's products or service. There are two components of quality- Design Quality and Performance Quality. There are various approaches to setting quality related expectations and among those alternatives one is the Cost of Quality (COQ) Reporting. It provides relevant cost and revenue data used for decision-making purposes. Discussion and analysis Quality can be defined as a characteristic or attribute of something. In the terms of business or trade, it is the degree of conformity between the expectation of the customer and the services rendered or goods delivered by the company. For management and control purposes, following are the two primary components of quality: a. Design quality b. Performance quality

Management and Control of Quality Quality is explained as a term associated with customer satisfaction. It is the total level of satisfaction any customer gets from any organization's products or service. There are two components of quality- Design Quality and Performance Quality. There are various approaches to setting quality related expectations and among those alternatives one is the Cost of Quality (COQ) Reporting. It provides relevant cost and revenue data used for decision-making purposes. Discussion and analysis Traditional accounting system just focuses on profits. The standards used in traditional costing are long established so there is a need to adjust them accordingly, due to changes in the traditional accounting system. This system does not try to trace the total cost of quality. It also cannot justify quality improvement activities. Hence, The traditional accounting system is considered to be deficient in terms of goal of managing and controlling quality.