ABSTRACT
Often, standard values for output and quality measures are available in the organization. The internal finance/accounting function is usually the source of these standard values. If a standard value does not exist, conferring with stakeholders or experts can sometimes determine a credible monetary value. For example, improved quality can result in improved products or services, which in turn can result in increased sales. Increased sales can either increase profits or improve the profit margin. Improved quality can also contribute to cost savings by reducing the amount of time or cost to acquire facilities and materials or to design, process, produce, store, market, account for, and deliver the product or service. The cost of quality is often another standard value. Many organizations have placed a value on quality. We first need to decide, however, what we mean by quality and then determine if the organization has placed an acceptable value on this quality measure.
