USING THE BUDGET IN PLANNING AND TRACKING THE COSTS OF QUALITY. A CASE STUDY

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By: IONELA URSU, IRINA GAVRILUC
JEL: M49
Keywords: forecast, budget quality costs, cost of quality, budgetary matrix

Companies are promoting quality as a key factor to retain clients and win new ones from the market, and having a clear and transparent way of budgeting the costs of quality can lead to higher profits. Therefore, the current paper aims to present the relation between budgeting and the costs of quality and to build a model that will allow us to forecast these costs and monitor them via the budgeting tool. In order to achieve this, a case study was conducted on a company from Iasi, Romania, that operates in the mechanical production field. Data such as quality costs, turnover, productions costs, and quantities from past years were used, in order to analyze and to propose a budget matrix for the 2023 year.

DOI: https://doi.org/10.47743/rebs-2023-2-0007