Similarities and differences between traditional quality cost and modern quality cost

They all pay attention to the strategic level, pay attention to suppliers, establish partners with suppliers, reduce costs, and communicate with customers from the functional design to reduce costs. These are not available in traditional cost management.

Different:

1 method is different. Modern cost management uses many methods (variable cost method, ABC, ABM, standard cost method, etc.). ), and the traditional cost management is generally absorption costing.

2 Different tools, modern cost management generally uses ERP for automatic calculation, while traditional cost management is based on manual cost calculation.

3 The emphasis is different. Modern cost management pays attention to beforehand and afterwards, implements cost early warning and attaches importance to R&D cost. Traditional cost management is limited to the manufacturing field, and most of them are post-event management.

Modern quality cost view

First, the prevention cost and evaluation cost are influenced or controlled by the management;

Second, the internal loss cost and external loss cost are the results of prevention and identification efforts. Additional preventive measures will reduce internal and external loss costs. Higher prevention cost will eventually lead to lower total quality cost, because the evaluation cost, internal and external loss cost will be reduced.