Because of the large technical developments in the field of media literacy, Technological changes and productivity intense competition among the institutes in the era Globalization, has been the focus of these institutions on the concept of Total Quality Management a plus. And the cost of quality is a key portion of the costs of production, and Which requires the preparation of information for these costs, and because of that, and the need for Prepare and provide accounting information system to measure and prove this Costs have emerged.
It was used descriptive and analytical approach here to answer the questions raised in the this study. One of the conclusions that have been reached in the need to prepare Accounting information system to determine the costs of quality and make it one of the essential Output because of its importance in improving the continuity of management control (Control) shows the increase in internal and external failure costs through to Existence. This has prompted interest from management and then try to reduce it to improve the quality of products and win customer satisfaction which Increase sales and competitiveness. According to what has been presented above, the programmers Quality It should be given to improving the considerable attention due to its role in the great and high provision yields. Accounting information systems must submit a report on the costs of quality for Let alone the financial reports and outputs of which must be determined depending on the Activities related to quality.
Introduction
One of the main challenges faced by business organizations is the ability to formulate appropriate strategy to achieve the quality as well as reduce costs in order to achieve customer satisfaction. the quality-related costs, and called cost of quality (COQ),must be identified, measured, and analyzed to ensure that the product not only meets the required quality level, but also satisfy customers in a range of cost.
Quality cost
The CoQ approach offers a way to reconcile manufacturers’ two conflicting objectives of maximizing quality of conformance and minimizing cost. By attaching costs to quality of conformance, this approach transforms the dual objective into one objective of cost of quality minimization. This allows for an easier comparison of manufacturing process and inspection strategy options. Yet there is no single definition of CoQ and its constituent cost elements. The first formal definition of cost of quality can be traced back to Jurans’ Quality Control Handbook [1] and includes all the costs that would disappear if no defects were produced. Since then, the concept of CoQ has undergone a series of modifications and refinements. Crosby was the first to break down CoQ into conformance and nonconformance costs [2], where conformance costs are all costs required to reach a specified level of quality of conformance and non-conformance costs are the resultant costs of imperfect level of quality of conformance. In one of the few recent and thorough literature reviews on the topic of CoQ, Schiffauerova et al. [3] provide the most comprehensive overview of existing CoQ models which also include opportunity cost models, process cost models, ABC models and the prevention-appraisal-failure (P-A-F) model. These models vary in how they categorize, include and emphasize different cost elements within CoQ. The P-A-F model is said to be the latest theoretical innovation in CoQ [4] and since its adoption by the American Society for Quality Control [5], has been used extensively [6]. It is also the model that will be referred to throughout this thesis. In his P-A-F model formulation, Feigenbaum [7] divided CoQ into the three interrelated categories of prevention, appraisal and failure costs. Here, prevention costs refer to all costs incurred in decreasing the frequency of process non-conformance occurrences. Amongst others, 9 these include scheduled equipment maintenance, tool replacement and investments in worker training. Appraisal costs are the costs involved in attempting to detect non-conformance through inspection or testing. The last P-A-F category, failure costs, is further divided into internal and external failure costs. Internal failure costs occur after appraisal and declarations of product non-conformance and include costs of rework attempts and scrap when rework is no longer possible. Whereas internal failure costs occur at the manufacturing plant prior to product release, external failure costs occur when a non conforming product is erroneously delivered to the consumer and fails on-field. Examples of external failure costs are warranty claims and loss of goodwill and sales. Table 1 provides examples of other costs that belong to each category [8].
Quality Costs Reporting
Historically, costs and quality did not give separate recognition in the accounting system. In most Cases the cost of quality is "buried" in a variety of general ledger accounts, treats, including work in process inventory And finished goods inventory. The cost of quality is a measurement tool that provides a measure of the cost specifically associated Achievement or non – achievement the quality of a product or service – as defined by all the requirements of the product or service Developed by the company and its contracts with customers and the community (Hagan 1985, P.3). The cost of quality can be Be great. The average is 20 to 25 percent of sales for many US companies (see Ostenega and Youde (1992). The Measuring the quality of performance is of great importance in the business sector in particular, because of the efforts that went into a large implementation of quality management techniques in a wide range of Organizations.
In an attempt to verify the cost of quality, it must be organized for the first time can be relied upon to calculate the total cost of quality. Should the costs of quality measurement to the maximum extent possible and practicable, and the benefits of these estimated costs. Like It is likely that the use of estimates instead of actual calculations numbers (Raiborn et al., 1996).
To collect the costs of quality, there must be a classification of the costs of this kind of spending limit. And it is linked to the bulk of all quality costs incurred by the company with the quality of conformity. These costs Divided into four broad groups. Two of these costs – known as prevention costs and the costs of the assessment – is Incurred in trying to keep the poor quality of compatibility from happening. The two other groups of costs – known as It is incurred due to the poor quality of compatibility happened – the failure of internal and external failure costs.
Quality is assembled almost said in the report the cost of quality costs. Information provided by It uses the cost-quality report by managers in several ways (see: Dale and Plunkett, 1990; and John et al., 1991; Garrison. And Noreen, 1994 and Ross, 1995).
Importance of quality cost reporting
1. quality cost information helps managers see the financial importance of quality. Because quality costs are Usually not accumulated by the accounting system, managers are generally not aware of the size and The importance of these costs. Thus, the cost of quality focused attention on how expensive poor quality can be.
2. to assess whether cost-effective distribution of quality or not. The report shows the amount of company Spend in prevention activities and evaluation (voluntary spending) and internal and external cost Failure (costs involuntary). Quality should be distributed more costs for the prevention and evaluation Activities and less about the failure of different types. Otherwise, this may indicate poor distribution Quality costs. However, while there is a high profit from the shift in the start of the costs of quality evaluation, Internal failure, and the failure of foreign groups to prevent a class and there is no "optimal" distribution Quality costs between the four categories.
3. to assist management in its efforts to reduce the costs of quality. The accumulated information on the cost of quality The report provides a basis for the creation of various elements of quality costs budgets. These can then budgets Be used as a basis for evaluating the performance of management and success in reducing the overall quality Costs. True high-quality and cost reports are designed to help in determining the type of activities that are most Heresy in reducing the cost of quality and quality when it is collected in sufficient detail the costs, the cost of quality Management reports help prioritize quality improvement activities and reinforces the idea that quality is Everyone's responsibility.
4. determine the relative importance of quality problems faced by the company. For example, the cost of quality The report may show that scrap is a big quality problem, or that the company will incur a high cost for the warranty. With this information, management can see where to focus their efforts.
Although the report of cost of quality is useful, it is important to note that the measurement and reporting of quality costs It will not solve the quality problems that have been identified. Moreover, some importance, but it is difficult to measure, quality costs typically are deleted from the report, the cost of quality, such as the opportunity cost is recorded, for example, the loss of more Income caused by poor product design or customer ill w
1. Juran, J.M., Quality Control Handbook. 1st ed. 1951, New York, NY: McGraw-Hill.
2. Crosby, P.B., Quality is Free. 1979, New York, NY: McGraw-Hill.
3. Schiffauerova, A. and V. Thomson, A Review of Research on Cost of Quality Models and Best Practices. International Journal of Quality & Reliability Management, 2006. 23(4).
4. Williams, A.R.T., A. Van Der Wiele, and B.G. Dale, Quality costing: a management review. International Journal of Management Reviews, 1999. 1(4): p. 441-460.
5. ASQC, Quality Costs- What and How. 1970, New York, NY.
6. Plunkett, J.J. and B.G. Dale, A review of the literature on quality-related costs. International Journal of Quality & Reliability Management, 1987. 4(1).
7. Feigenbaum, A.V., Total Quality Control. Harvard Business Review, 1956. 34(6): p. 93-101. 8. Sharma, R.K., D. Kumar, and P. Kumar, A framework to implement QCS through process cost modeling The TQM Magazine, 2007 19(1): p. 19.