The effect of implementing quality costing on financial performance: case study of Hormozgan Gas company

Articles in Press

Document Type : Research Paper

Authors

1 Department of Accounting, Management & Economics Faculty, Shahid Bahonar University of Kerman Kerman, Iran.

2 Department of Accounting, Faculty of Management, Economics and Accounting, University of Hormozgan, Bandar Abbas Iran.

3 Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran.

10.22103/jak.2025.22798.4006

Abstract

Objective: In today’s business environment, which is characterized by increased globalization of markets and intense competition, the quality costing system is considered to be a cost reduction tool and a source of profitability that can increase the competitive advantage of the organizations. This research investigates the impact of implementing a quality costing system on the financial performance of Hormozgan Gas Company.

Method: This research is an empirical study that uses archival and survey strategies. It is a time-series study, and the data was collected through interviews as well as the financial statements of the Hormozgan Gas Company for the period of 2016-2021. The statistical population of the study consists of all managers and employees of the Hormozgan Gas Company, from which a sample was randomly selected. Interviews were conducted with them in order to classify quality costs.

Results: The results show that the implementation of the quality costing system has a positive impact on the company's financial performance and this system has reduced the compliance costs in Hormozgan Gas company. In addition, the analysis shows that the correlation coefficient between evaluation costs and appraisal costs is negative.

Conclusion: The company’s high investment in prevention costs and also, the high ratio of prevention costs to total quality costs are the main reason for the low ratio of appraisal costs to the prevention costs and the low rate of failure costs in this company.

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Main Subjects

Journal of Accounting Knowledge

Articles in Press, Accepted Manuscript
Available Online from 12 April 2025

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History

  • Receive Date: 09 January 2024
  • Revise Date: 18 December 2024
  • Accept Date: 12 April 2025

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