Reports an examination of the management’s, staff’s and operators’ attitudes to and awareness of the concept of quality costing in the division of a small‐ to medium‐sized enterprise (SME) manufacturing precision components for the aerospace industry. Despite a previous but unsuccessful quality costing initiative, it was found that some confusion exists, at all levels of the organisational hierarchy, over the terms used in quality costing. With respect to the perception of the scale of quality costs in the company, senior management believed them to be higher than both line managers and operators, while operators viewed them to be lower than line managers. It is also pointed out that line managers and operators were likely to be more honest about their lack of knowledge than were management.
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