IDEAS home Printed from
   My bibliography  Save this paper

Cost of Quality - Their Determination and Relationships


  • Korgaonkar M G


With a renewed emphasis on Management of Quality, the question of collecting and quantifying Cost of Quality (COQ) has assumed special significance. It is realized that organizations intending to launch quality improvement programs need to first deploy a suitable COQ system to support and direct the quality improvement process. Although the various components of COQ i.e. prevention, appraisal, external and internal failure costs have been recognized for a long time, it is only recently that the various issues connected with it have been systematically studied. In this paper we take a comprehensive look at the COQ issues and the kind of answers that research has yielded. More specifically, we are interested in the analysis of the following questions: 1. What are the various elements of quality of costs and how are they classified into COQ Companies? What are the company practices regarding these? 2. What are appropriate indicators of COQ? In general, how much do companies spend on quality, as reflected by COQ indicators? 3. What are the relationships between the COQ Components? How do they influence the COQ? 4. What are the effects of COQ on unit product cost and product profitability? 5. Can suitable analytical model be developed to predict the effect on COQ of changes in company efforts on prevention and appraisal? 6. How should a quality cost systems be set up? The above issues are analyzed in detail. The results from prevailing research are reviewed in seeking answers to the above issues. Finally we summarize the conclusions drawn from the study.

Suggested Citation

  • Korgaonkar M G, 1990. "Cost of Quality - Their Determination and Relationships," IIMA Working Papers WP1990-11-01_00981, Indian Institute of Management Ahmedabad, Research and Publication Department.
  • Handle: RePEc:iim:iimawp:wp00981

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:wp00981. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.