CONCEPT OF TOTAL QUALITY MANAGEMENT (TQM) AND ACCOUNTING VALUATION

Abstract

Quality has always been a measure of whether a product will be competitive in the market. To achieve this, it is necessary to achieve product or service efficiency, innovation, and consumer satisfaction. Every business entity needs to research how to increase the satisfaction of its customers. World competition dictates a continuous increase in the quality of products and services through the introduction of TQM - total quality management. Such a process involves organized teams for quality control and finding new, better, and more successful ways of doing their work. The main goal of achieving quality is that there should be a strategy with several advantages over the competition. Consumers will be satisfied if the products have a lower price, but are of higher value. It will improve the image of the operation of the business entity and the employees will have the opportunity to progress. While the owners will be able to record increased income and think about future investments. Improved quality is reflected in multiple segments of the organization, increasing reliability, productivity, profit, etc. But it is necessary to operate a control system with a special emphasis on the quality cost control system. The costs of quality represent costs that provide a guarantee that the products or services meet the expectations of the users. This system is of great importance to the management because it increases and confirms the value of the products and the reliability of the operation of the organization.