The content of quality cost generally includes

Quality cost includes prevention cost, evaluation cost, internal loss cost and external loss cost.

Quality cost refers to all expenses paid by enterprises to maintain or improve product quality, as well as all losses caused by product quality not reaching the specified level. Quality cost includes two aspects: the cost of prevention and inspection, and the cost of loss. The method of determining the best quality cost can refer to the reasonable proportion method.

Prevention and inspection expenses are also composed of prevention expenses and inspection expenses. Prevention cost refers to all kinds of expenses and inspection expenses incurred to ensure the product quality to reach a certain level, and refers to the expenses incurred to evaluate and inspect the product quality. Loss cost includes internal quality loss cost and external quality loss cost. Internal quality loss cost refers to the loss cost caused by quality problems in the production process, including the loss caused by various defects in the production process.

The significance of calculating quality cost;

In enterprise practice, quality cost does not exist in isolation, and should be considered in combination with enterprise strategy. What kind of strategic goals an enterprise has, there will be corresponding product quality strategies, and different quality strategies will produce different quality costs. It is important that after having a clear understanding of quality cost, managers will have a deeper understanding of the losses caused by mistakes and waste.

Enterprises often ignore the integration of strategic planning and quality planning while trying to increase profits. The reason for this situation is that enterprises do not fully understand the relationship among strategy, quality, productivity and profitability. If enterprises pursue low-cost strategy, they must formulate corresponding low-cost quality strategy. If the goal of an enterprise is to establish a corporate image with high-quality products, then it is necessary to plan the product quality and take the development, production and sales of high-quality products as the top priority in the work.