Quality costing for accountants

Paula Sue DeLong Gutierrez, University of Texas at El Paso


Quality costing concepts have been discussed since the introduction of total quality management (TQM) into the United States by quality gurus such as Deming, Crosby, and Juran during the late 1960's. As the interest in TQM expanded, exploded, and diminished throughout the 1980's, quality costing remained a little known tool in the TQM arsenal. Now that only companies serious about improving quality are implementing TQM, quality costing should gain prominence. It is the most flexible measurement tool available to improve product and service quality. Quality costing methods and uses have changed over time, reflecting the changes in technology and globalization strategies. However, quality costing methods are still little known, especially among accountants. This paper will describe quality costing, its benefits and uses, and identify strategies in establishing a quality costing system so that management accountants and top management may apply these concepts in their business's quality movement. A case analysis will be presented illustrating how these methods have been used in the Xerox Corporation. Finally, a hypothetical quality costing system will be proposed for a business in the manufacturing sector. ^

Subject Area

Business Administration, Accounting

Recommended Citation

DeLong Gutierrez, Paula Sue, "Quality costing for accountants" (1996). ETD Collection for University of Texas, El Paso. AAIEP26246.