Hrvatsko društvo ekonomista

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August 2015. ::: Vol.66 No. 03

    Dubravka Pekanov Starčević
    Iva Mijoč
    Josipa Mijoč

QUANTIFICATION OF QUALITY COSTS: IMPACT ON THE QUALITY OF PRODUCTS Recenzija, Prikaz Companies have increasingly focused their attention on quality costs because related activities use substantial resources, which directly affect business performance. Therefore, it is crucial to raise awareness of the quantification and rationalization of this group of expenses. The aim of the paper is to investigate if companies which pay more attention to quantifying quality costs produce products of higher quality compared to their competitors. Croatian companies whose securities are traded on a regulated market (Zagreb Stock Exchange) represent the framework of empirical research. The sample included 48 companies whose accounting/finance managers agreed to participate in the study. The results of the study have shown that companies that quantify quality costs achieve higher quality of products in terms of performance and reliability. In addition, the paper has shown that companies’ characteristics differ depending on whether they quantify their quality costs or not. Reorganization and quality costs quantification are justified with possible financial benefits for companies. Therefore, companies should be encouraged to extract the quality costs from the total overhead costs in order to improve quality and consequently achieve better financial results. quality; quality costs quantification; cost management; statistical analysis; quality dimensions measurement. Puni tekst: pdf (272 KB), Engleski, Str. 231 - 251

QUANTIFICATION OF QUALITY COSTS: IMPACT ON THE QUALITY OF PRODUCTS

Recenzija, Prikaz

Companies have increasingly focused their attention on quality costs because related activities use substantial resources, which directly affect business performance. Therefore, it is crucial to raise awareness of the quantification and rationalization of this group of expenses. The aim of the paper is to investigate if companies which pay more attention to quantifying quality costs produce products of higher quality compared to their competitors. Croatian companies whose securities are traded on a regulated market (Zagreb Stock Exchange) represent the framework of empirical research. The sample included 48 companies whose accounting/finance managers agreed to participate in the study. The results of the study have shown that companies that quantify quality costs achieve higher quality of products in terms of performance and reliability. In addition, the paper has shown that companies’ characteristics differ depending on whether they quantify their quality costs or not. Reorganization and quality costs quantification are justified with possible financial benefits for companies. Therefore, companies should be encouraged to extract the quality costs from the total overhead costs in order to improve quality and consequently achieve better financial results.

quality; quality costs quantification; cost management; statistical analysis; quality dimensions measurement.

Puni tekst: pdf (272 KB), Engleski, Str. 231 - 251