Chapter 17 presents a comprehensive framework that can be used as the basis for creating a comprehensive system for managing and controlling quality.
Required: Provide an overview of the key elements of the framework presented in the chapter.

Question

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Feedback: The primary elements of the comprehensive framework presented in Chapter 17 are as follows: 1.Knowledge of Business Processes-the framework assumes a cross-functional effort,with input of managers from across the value stream.The accountant,as record-keeper,can be viewed as a key point of contact across business functions.
2.Role of the Customer-the focus of the comprehensive framework is outward,not internal;as such,customer expectations are depicted as the cornerstone in the framework;as well,external failure costs are depicted as part of the relevant financial information reported by the management accounting and control system.
3.Financial Component-the accountant can provide relevant information for implementing a Cost-of-Quality (COQ)reporting system,in which total spending on quality is subdivided into four categories: Prevention,Appraisal,Internal Failure Costs,and External Failure Costs.
4.Nonfinancial Performance Indicators-both internal and external (i.e. ,customer- satisfaction)measures are viewed as complements to the relevant financial information captured by the management accounting system.
5.Feedback Loops-these are included in order to depict the system as dynamic in nature,with an overall focus on continuous improvement.
6.Relevant Cost Analysis-information is a key element of the comprehensive accounting and control system is information for evaluating quality-related spending and investment decisions.(As such,the framework links to the discussion in Chapters 11 and 12 of the text. )
7.Link to Operations Management-techniques from outside of accounting are needed to help identify and analyze quality-related problems.Included are such tools as Pareto charts,cause-and-effect diagrams,and statistical control charts.
8.Breadth of the System-the framework assumes that responsibility for quality management occurs throughout the value chain,unlike the past in which management and control efforts focused on a small part of the value chain: the manufacturing process.

Chapter 17 Presents a Comprehensive Framework That Can Be Used