Integration of quality cost and accounting practices

Abstract

Purpose The purpose of this paper is to suggest a quality cost measurement model which is managed in coordination and conjunction with the accounting reports, thereby creating a comprehensive management control tool for organizations. Design/methodology/approach The contents of this paper arise from studying the theory, analyzing the evolution and observing the practice restrictions of both quality cost and accounting systems. Findings By using this proposed model, it is possible to unify different management control tools (such as quality cost and financial accounting) into a single system, without neglecting their individual theoretical principles. Research limitations/implications This is a general model that is intended to be applicable to organizations of any size and type, thus requiring specific adaptations when implemented in particular cases. Originality/value Theoretical aspects of quality cost have been widely developed, especially in academic environments. The current model proposes an explicit and practical measurement procedure in order to calculate these costs relying on the accounting system.