Search results

The purpose is to assess the impact of clinical costing approaches on the quality of cost information in seven countries (Denmark, England, France, Germany, Ireland, the Netherlands and Portugal).

Costing practices in seven countries were analysed via questionnaires, interviews and relevant published material.

Although clinical costing is intended to support a similar range of purposes, countries display considerable diversity in their approaches to costing in terms of the level of detail contained in regulatory guidance and the percentage of providers subject to such guidance for tariff setting. Guidance in all countries involves a mix of costing methods.

The authors propose a two-dimensional Materiality and Quality Score (2D MAQS) of costing systems that can support the complex trade-offs in managing the quality of cost information at both policy and provider level, and between financial and clinical concerns.

The authors explore the trade-offs between different dimensions of the quality (accuracy, decision relevance and standardization) and the cost of collecting and analysing cost information for disparate purposes.

This paper aims to explore the relationships among cost accounting systems structure and information quality properties through an integrated framework of cost system design and use.

In the framework, cost accounting systems structure is defined in terms of the level of detailed information existence, the cost disaggregation according to behaviour, the scope of variances calculation and the frequency of cost information provision. Cost information quality expresses its perceived usefulness by the users in terms of relevance, accuracy, timeliness, usability, compatibility with their needs, up‐to‐datedness, reliability and thoroughness for decision‐making purposes. In order to investigate the existing relationships, data were gathered from 119 leading Greek manufacturing companies via a questionnaire survey.

The empirical findings indicate that the majority of cost accounting systems structure characteristics exert a statistically significant positive influence on cost information quality dimensions. Only the systems' ability to disaggregate costs according to behaviour and their capability to generate customized to user specifications reports were not found to be statistically significantly associated with information quality.

The authors believe that their conclusions have important implications for researchers and professionals with respect to cost systems design as well as cost systems evaluation.

The innovation of the study lies in the development of an integrated framework that encompasses both cost systems structure characteristics and cost information effectiveness features.

This paper aims to examine the reasons why introducing a “fixed” management accounting technique, such as Juran's cost of quality technique, results in different, rather than similar outcomes.

Actor‐Network Theory (ANT) was used to examine events in a longitudinal case study where Juran's cost of quality technique was introduced into two manufacturing plants of the same organisation.

Both plants developed the cost of quality in significantly different ways to Juran's “fixed” cost of quality technique. In addition, significant differences were also found between the plants, despite the intention to replicate the cost of quality from one plant to the other.

Although the precise circumstances of the plants in the case study are unique, the principles of ANT that describe how the cost of quality was introduced and the differences that were observed, are likely to be relevant to other organisations and techniques.

The practical implications of this study are that “fixed” techniques – such as Juran's cost of quality – are not fixed and are unlikely to be implemented in “textbook” fashion. To manage the innovation process better, practitioners need to understand the heterogeneity of actors' interests, the variety and complexity of the context and the iterative, recursive nature of the innovation process.

Although the cost of quality is an important management accounting technique, this is one of the few studies to have empirically examined it.

In every manufacturing company, irrespective of size, product and other variables, management are constantly involved in quality‐related decisions which have a direct effect on product quality. An analytical method is described for assessing an organisation's approach to quality management. On application, managers are provided with information on the reality of their quality assurance activities. An overview of some of the issues involved in decision making is provided, followed by an outline of the research methodology, and, finally, the “method” is presented with some results arising from its application.

The purpose of this paper is to analyze the effects on quality-related learning resulting from the use of the quality cost information (QCI). Specifically, this paper analyzes to what extent the diagnostic and interactive uses of QCI contribute to improve quality-related learning.

The proposed model was tested using a structural equation modeling procedure with AMOS and the data were collected through a questionnaire survey conducted on a sample of Portuguese certified companies.

The results shed light on expected relationships since the interactive style of use of QCI, unlike the diagnostic style of use, has a positive effect on quality-related learning. However, the diagnostic use of QCI was found to be a predecessor of the interactive use of QCI, in line with previous studies. Finally, diagnostic use of QCI exerts an indirect positive impact on quality-related learning through the interactive use of QCI.

This paper contributes to the body of research on the use of interactive and diagnostic systems, providing evidence that a balance between those systems improves quality-related learning.

The results show that the use of QCI to promote participation, dialogue and involvement of all participants (according to an interactive style of use), and not just to control the accomplishment of predetermined objectives (according to a diagnostic style of use), is a necessary condition for quality-related learning.

Despite the wide-ranging literature focused on the identification, measurement and reporting of QCI, less attention has been paid to how this information is used in the management process. The way in which the use of QCI can contribute to the improvement in quality-related learning is also an unexplored topic in the literature.

The purpose of this paper is to describe an investigation into collection and measurement of cost of quality, explaining how this information was presented and used for business improvement in a footwear company.

An action research methodology was adopted. The research involved: review of available COQ literature; identification of cost categories; adoption and trial of cost collection systems.

Quality costing can only be used as a management tool if the data presented is both accurate and valid. This is limited by availability of required information and necessary expertise and resources to gather and analyse such information. Careful development of the cost model and a transparent, agreed methodology for employing it is essential.

The methodology applied was appropriate, generating data to facilitate discussion and draw specific conclusions from. A perceived limitation is the single case approach; however, this can be enough to add to the body of knowledge.

Guidelines for quality cost collection and analysis are presented. The methodology developed is being used elsewhere within the same corporate group.

The paper describes how one company effectively used COQ to produce focused data for decision making. It demonstrates that COQ can focus efforts to improve business performance.

Looks at how the construction industry’s demand for better management of quality in construction projects is becoming increasingly important for every project participant. Says that one important aspect of a quality improvement programme is the cost of quality which is relatively new to participants of construction projects. Describes the results of a survey among professionals in the construction industry on the issues relating to the management of quality and especially its cost. Shows that results of the investigation indicate, among others, the importance of client role in determining the quality of the end product; the usefulness of information on non‐conformances in preventing failures and improving a process; problems with ground conditions; how most failure costs can be eliminated; how the contractor’s role should include anticipating of problems; and how information on the cost of failures can be an indicator of weaknesses and assist in preventing the same failure in the future.

The purpose of the study is to examine the research problem that represents an attempt to approximate the importance of quality costing in managing a modern enterprise using the selected enterprises from small and medium-sized enterprises (SMEs) in Poland.

The primary goal of the research is a need to acquire knowledge about the use of quality cost accounts in enterprises operating in Poland. The research has been conducted in the SMEs of production and services. From October 2018 to December 2018, survey-based research was carried out in the selected SMEs of production and service in Poland. The targeted participants of the study are from the medium-sized enterprises, employing 50–250 people.

The pilot studies conducted in companies indicate that modern enterprises are focused on quality. Many enterprises declare to be continuously improving quality system and quality costing. However, generally, these are large companies that have implemented ISO standards, often part of international corporations. The survey result of the study shows that medium-sized enterprises still make little use of modern cost accounting variants. Based on the study, only 9.75% (39 enterprises) from a representative group of 400 companies from the sectors of manufacturing, services and production as well as service companies apply quality costing. Some of the other enterprises are only taking measures to implement quality cost accounting.

The research has been conducted in randomly selected SMEs in the form of a questionnaire interview. In order to further analyze the construction of quality cost management (QCM) systems and the use of information from QCM by enterprises, case study method should be used more widely.

The results of the study provide useful help for companies that are quality-oriented and want to implement quality costing. The survey has been conducted in 400 enterprises, and the survey results of considered SMEs reveal the most important aspects of the application of quality costing.

The questionnaire used, the answers provided and the resulting conclusions fill the identified research gap. In the author's opinion, findings of research are relevant and useful, not only for accounting practice but also for theory. They show that although TQM and quality costing have been very popular in the literature since the 1990s, the degree of application of quality costing in practice (except for large, often international companies) is too low. So, the suitability of QCM in managing a modern enterprise from the SMEs should be promoted.

The purpose of this paper is to explore how the sophistication of a quality costing system depends on the quality management maturity (QMM) level in Food and Beverage (F&B) enterprises. Since no previous research has taken place in this area, the paper aims at analyzing the relationships between quality costing and the specific variables that define the various maturity stages.

A structured questionnaire was used to survey 457 F&B companies. This produced 104 usable responses (23 percent response rate). Multidimensional correspondence analysis (MCA) with hierarchical cluster analysis (HCA) were used to detect and represent underlying structures in the categorical data set and to detect possible clusters between variables.

The more mature a company’s QMM, the more emphasis they placed on appraisal quality costs and effective use of quality costs information. Prevention costs have no statistically significant connection with the level of maturity. A generalized “expensive” use of quality costing, with no focus on problematic areas and possible solutions, does not always lead to the resolution of problems.

A complicated – and some think unfair – tax system, combined with limited cash liquidity constitutes an unstable environment for Greek companies, in which they have to survive and develop. This environment does not support quality costing, thus resulting in limited interest by company management in participating in the authors’ research. Furthermore, the Greek Uniform Chart of Accounts and the Greek Accounting Standards do not include specific quality-related accounts, making it difficult for companies to measure quality costs and for researchers to investigate the quality costing field.

It is the first time that QMM levels of Greek F&B companies have been reported. The research explores the characteristics that a quality costing system of Greek F&B organizations develop at the various maturity levels. The analysis uses an exploratory method – MCA – which can highlight intense correspondences of characteristics and clusters, which cannot be predicted in advance.

The purposes of this study are to examine the relationship between the distribution of quality costs and the level of maturity of an organization's quality system, to assess the extent to which effective COQ systems and maturing quality systems affect organization performance, and to determine why some organizations do not utilize COQ systems.

A survey instrument was developed to determine the distribution of total quality cost among the four ASQ categories. The instrument also assesses the maturity of the organization's quality system using the ANSI/ISO/ASQ Q9004‐2000 performance maturity level classification system. Correlation analysis was used to examine the relationships between quality costs and quality system maturity.

External failure costs were found to decline as a percentage of total cost of quality (COQ) as an organization's quality system matures. Total COQ was found to increase as an organization moved from a very low level of quality system maturity to a higher level. Sales and profit growth were not significantly correlated with the presence of a quality cost system or with the level of maturity of the quality system. Lack of management support was found to be the most common reason why organizations do not systematically track quality costs.

Additional research is needed to determine the relationship between the presence of a COQ system and its effective integration with the quality system and organizational outcomes. Future research is needed to expand the study beyond the boundaries of the USA. Future research involving longitudinal studies would be beneficial in more accurately assessing the nature of the changes in COQ distribution over time.

The findings of this study suggest that organizations planning to implement a COQ system should ensure that management supports the program and is prepared for a short‐term increase in total COQ. These findings also support the often‐suggested expectation that in the long run the COQ system will lead to a significant reduction in external failure costs.

Systematic measurement of COQ is underutilized in practice. This study systematically examines why this is the case. In addition the study provides information that can be useful in justifying implementation of COQ measurement systems.