A Historical Analysis of the Evolution of the Economics of Quality: The Cost of Quality Revisited

The present research featured the illicit trade in Russian gold and silver coins in Xinjiang in the 1850's. The paper focuses on the problems of control and customs services, as well as on the difficulties connected with the trade in Russian goods. The historical analysis was based on the documents written by Konstantin Adrianovich Skachkov, the then Russian Consul in Chuguchak. The materials were obtained from the Research Department of Manuscripts of the Russian State Library. In his report, Consul K. A. Skachkov compared the state of the markets of the Russian-Chinese trade in Chuguchak and Kyakhta. He highlighted the broad prospects for trade development in Xinjiang. The Consul paid great attention to the problems on the young market of Central Asia and proposed some measures to improve the situation. He performed a comparative analysis of the trading activities of a Russian merchant and a smuggler. The analysis makes it possible to reconstruct the trading process, determine the cost of transportation, and formulate the commercial benefit resulting from the legal trade and the contraband trade. K. A. Skachkov concluded that despite the high potential for trade development, the region was torn apart by substantial internal contradictions and demanded greater attention from the government. The illicit trade in Russian coins was caused by the barter trading on the Xinjiang market in 1850's.

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Mechanism of the quality cost administration system

Economics. Finances. Law ◽

10.37634/efp.2021.5(2).4 ◽

2021 ◽

pp. 23-26

Author(s):

Serhii TKACHENKO ◽

Olena POTYSHNIAK ◽

Yevheniia POLIAKOVA

Keyword(s):

Quality Assurance ◽

Production Process ◽

Cost Management ◽

Quality Cost ◽

Cost Of Quality ◽

Quality Of Work ◽

Quality Assurance Process ◽

Assurance Process ◽

The Cost

Strengthening the impact of the production and economic mechanism on increasing the economic efficiency of the production process and the quality of work is possible on the basis of choosing the most effective ways to achieve high end results of the national economic system of the country. One of these ways is the inclusion in the system of controlled parameters of the economic parameters of quality cost management, the use of which guarantees the quality coordination system to reach a given economically justified state. Adjustment of quality costs consists in maintaining the established proportions between the costs of quality assurance (quality) and the mismatch of work quality indicators, which is achieved by controlling the level of defects, maintaining certain conditions, rules and norms corresponding to the optimal mode of work on quality assurance and the optimal value costs. The quality assurance process is based on a classification represented by a range of activities aimed at ensuring the quality of tools, objects of labour, living labour and information data at all stages of the production process. The costing methodology is based on the selection of the costing object and costing units. Representation of work on quality assurance as an object of calculation, and hours of work or total amount of work as calculation units allows at the right time to present in value terms both the quality assurance process as a whole and the cost of quality for the product. The recommended mechanism of the cost management system in general is focused on a wide range of enterprises and associations, and its use allows to obtain the effect of minimizing the cost of quality, as well as improve the quality of work to ensure product quality, ice directly contribute to production efficiency and quality. Increase of economic benefit at the expense of cost control system solutions of the problem in the future is possible if its implementation on the basis of the theory of functional management development, conversion of static model into a dynamic coordination costs.

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