Quality costs are a measure of all costs associated with achievement of product quality. Traditionally collection and analysis of quality related costs received less attention because of the lack o f understanding of the concept and difficulties in measuring & linking it with the organizations cost system.

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The measurement of these costs helps to:-

 

  • Highlights to all employees the important of product & service quality to business profitability.
  1. Form a basis for decision making.
  2. Identify area which need immediate attention & improvement
  3. Measure the effect of action taken
  4. Budget the expenditure for accomplishing the QM Program

For achieving these purpose an understanding of quality costs and a program for evaluating there is required.

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