Accounting Department In Accounting

1. Introduction

Quality is the main focus of a number of products. Companies are facing tough competition in the consumer market and people are becoming more and more critical of their products and give the buying process considerable thought so that they can choose the best product there is. In order to keep up with the criticality of the customers, the companies have to produce the products up to the tough expectations of the customers in order to compel the customer to purchase the products of the company.

To increase the quality of the products, the companies have to heavily invest in reducing the number of faults in their products and to do this, they have to improve their workforce, their methods of operations to increase the accuracy

Therefore, in order to produce high quality products, all of the departments of the organizations have to be involved and the company has to employ qualified and well trained workforce. Each department plays their important role in the production process of the organization and this research would be specifically focused on the role of the accounting department of the organization in producing quality products. It is the responsibility of the accounting department to make sure that the quality costs of the operations to produce quality products remain reasonable, the accounting department is responsible of measuring the quality costs and classifying these costs so that the costs can be better understood and designing techniques to report these costs. Keeping in mind these responsibilities of the accounting department, the current purpose of this research is to enable the reader to comprehend the importance of quality cost’s

The difference between both of these failure costs is that the internal failure costs is the cost of conforming the products offered by the company to the demands and requirements set out by the company and these costs are usually spent on re-working, re-designing, delays and solving the problem of lack of flexibility and adaptability of the products. While the external cost of failure are the costs that the company has to spend on products which are found defective after the products have been handed over to the customers. These costs include the costs for complaints, repairing goods and providing the services and loss due to the low quality of the products (Besterfield, 1998).

The costs of good quality are the costs implicated on the company due to its policy of prevention mostly. The costs of good quality are the costs spent by company in making sure that the products offered by the company are up to the standards of the customers. The costs of good quality are further subdivided into two categories respectively. The categories are explained in the following