Application of Accounting and Reporting in a Cost-Oriented Quality Management in Wood-Processing Companies

The company must constantly review its own computer system if it wants to maintain its competitiveness and ensure sustainable development in strong international environment. The company must monitor if the information system provides suffi cient information, in terms of quantity and quality, for all its business activities. In order to improve its own position in the market, it must be adequately represented in the quality area, quality costs and the related quality indicators. We offer to companies an option to track quality costs and subsequently evaluate them.


INTRODUCTION 1. UVOD
Accountancy plays a vital role in the company.It is a source of information for a number of entities the entrepreneur comes into contact with by conducting its business.Owners, managers, investors, banks, insurance companies, unions and creditors are always intere-sted only in a particular area of results or in complex results of a company performance for a calendar period.Instead, they should be provided with high-quality information to be able to get a comprehensive picture of the company position.
All tasks, to be fulfi lled by accountancy in a company, can only be carried out successfully if attention is paid not only to the fi nancial accounting, but also to DRVNA INDUSTRIJA 63 (4) 283-289 (2012) cost accounting, which focuses on internal processes.For a successful company management in the market environment, such information is necessary for successful control.This paper confi rms the need of high-quality economy, implying monitoring of quality costs as part of quality control.The current business environment requires speed, fl exibility and quality.According to Šatanová et al. (2010) it is necessary to realize the fact that without good quality fi nancial and economic management, a company can hardly stand the pressure of everyday competition.
Each company in Slovakia is run in accordance with the Accounting Law No. 431/2002 and has an obligation to keep records of its activities related to the area of fi nancial accounting.This area gives a picture of the company management, and its results are mainly used to provide information to external users in terms of profi t and loss account, balance sheet and cash fl ow statement.For managing and further decision making about the direction of the company, such information does not provide suffi cient explanatory power and is also available to potential competitors.For this reason, companies promoted the introduction of the so-called cost accounting, which deals with the economic fundamentals of the internal point of view.It presents a picture of the company management, its position and it is only for internal users who use the results obtained for the company management.

Kontroling u ekonomici i kvaliteti
Economy quality also monitors a special category of expenses called quality costs, which represent a fi nancial outlay required for the activities associated with providing, maintaining and improving quality.It is an economic category used to evaluate the effectiveness and effi ciency of processes, and the quality impact on the creation of profi t, costs structure, output, income and sales.The quality costs provide information concerning the implementation of quality control system in the company, determine the optimal level of product quality or service and show the weaknesses of the company.
The quality costs are extremely imortant for management decision making and it is therefore necessary to introduce them in the company system of monitoring and evaluation.Figure 1 represents schematically the process of the system development.
Each company constantly tries to improve its business.For this reason companies try to implement and use new advanced knowledge in magement.Control is defi nitely one of them, and it has become an indispensable part of modern business management.According to Macík (1999) controlling is the "tool for integrating multiple information systems and management, including strategic and operational planning, accountingparticularly fi nancial and internal (operational costs), budgets, costing and other forms of evidence and reporting".Quality cost reporting system is the basis of business of budget-type companies (Potkány, 2009).Information from corporate reporting can be used for establishing intradepartmental prices (Potkány, 2005).The concept of quality control is obtained by connecting the area of quality with controling, and however it is not widespread nor applied in Slovakia.Currently, the concept of quality control is process-orientated, not product-orientated, as in practice the concept of ISO standards and TQM promote just a procedural approach.One of the objectives of quality control is also to improve the overall quality of the company.In quality management, control involves several tasks: (a) it coordinates the business areas, (b) promotes quality management and (c) monitors and reviews performance measures by the provision of appropriate information.For this purpose several tools are used such as calculation of quality costs, quality indicators and quality of reporting.

Kontrola kvalitete i izvještavanje
The actual application of the concept of quality control management to business processes can be divided into several stages.
In the fi rst phase the state of the company is analyzed.Its quality objectives and processes are identifi ed, and then classifi ed.The goals themselves must be part of an overall strategic goal and future direction of the company.The idea is to maximize the measurable objectives and therefore quality should be a measurable value in the company, as the basic feature of quality control.The individual targets should be specifi ed not only at the company level but also at the level of departments and workplaces.This process results in the specifi cation of targets for the quality of the company (see Tab. 1).
After specifying the quality objectives, the main groups of quality costs were identifi ed, taking into account the specifi c situation in the company.In our case, .......Šatanová, Krajčírová: Application of Accounting and Reporting in a Cost-Oriented...

identification of components of quality costs identifikacija komponenti troškova kvalitete alignment of individual cost items and loss of existing cost and economic centers in order to track individual items of financial quality expenditure određivanje individualnih troškova i promjena trenutačnih troškovnih i ekonomskih centara kako bi se financijski troškovi kvalitete mogli pratiti individualno
monitoring of financial expenditure on the quality of service records by such a system of analytical accounts that will monitor this expenditure according to the place of formation and generic division praćenje financijskih troškova kvalitete usluga sustavom analitičkog obračuna, kojim se prate troškovi prema mjestu nastanka i prema generičkoj podjeli  the cost items in Table 2 will be subject to observation, and their distribution will be made according to the PAF model, which implies the division of quality costs to prevention costs, evaluation costs, and internal and external losses.
To see clearly the total quality costs, the use of MS Excel was recommended.With MS Excel the data would be processed in prepared workbooks.Every workbook also had to include sub-reports on the quality costs.These sub-reports would be checked monthly.Effective control of economy in quality assurance will be implemented through a system of quality indicators.It provides the necessary information concerning the behavior of quality costs.It is a combina-tion of cost and performance parameters.The cost consists of the so-called ratios of different groups of quality costs.
For the purpose of quality control the most important elements are: an indicator of the proportion of internal losses to total operating costs Travelling costs for handling of external differences Putni troškovi zbog rukovanja nekvalitetnim proizvodom u uporabi an indicator of the proportion of external losses to total cost an indicator of the proportion of external losses to the turnover of company an indicator of the costs for the evaluation phase supply to the total purchase cost of materials an indicator of the proportion of operating costs for the evaluation of the total operating costs an indicator of total variable quality costs to the overall business costs and other Based on the results obtained from the reports and parameter values, the benefi ts will reveal themselves arising from the applied methodology of the concept of quality control.The top management will then be informed about their performance in terms of quality and future measures necessary for ensuring and improving quality will be formulated.
The whole concept of the methodology of quality control can be summarized in the scheme below (see Fig. 2).
Verifi cation is the fi nal stage of the methodology of the concept of quality control (see Figure 2) and provides successful implementation of quality control in practice.In this way, the company has the possibility to detect and subsequently eliminate the shortfalls, thus leading to improvements in the quality of business processes and increasing overall effi ciency.

CONCLUSION 4. ZAKLJUČAK
As companies seek to establish and implement a quality management system on their own terms, a system of monitoring and evaluating quality costs should be built in each of them.It should be noted, however, that ISO 9000 standards do not track quality costs, nor fi nancial indicators or measurements.It is at the discretion of the company to decide whether and how to pay attention to this area.However, the fact remains that business sphere does not deal much with the given indicators and their monitoring, and that this analysis is signifi cantly underestimated.Companies usually solve the problem of reducing costs only when dealing with the actual cost and with the related expenses.We have offered to companies an option to track their quality costs and subsequently to evaluate them.In this way, the possibility is provided of tracking the effects of quality costs.First, there are losses due to shortcomings in the fi eld of quality assurance.However, there is also the opportunity to identify any signifi cant effects on corporate performance, and the possibility of reducing the total costs of some performance indicators and quality management systems.It is possible to quantify any positive benefi ts either in production or in the user domain.Finally, it may create a basis for pricing the product or service that will take into account the quality taking into consideration producer and user benefi ts.

of responsible employees of each cost center for the problem of monitoring the quality of financial expenditure motiviranje
odgovornih uposlenika svakoga troškovnog centra za praćenje kvalitete financijskih troškova processing and transmission of information on quality expenditure procesuiranje i slanje informacija o troškovima kvalitete Figure 1 Building a system of monitoring and evaluation of costs (Šatanová et al., 2008) Slika 1. Izgradnja sustava praćenja i vrednovanja troškova (Šatanová i sur., 2008)

Table 1
Specifi cation of quality targets(Šatanová et al., 2008)Tablica 1 Specifi kacija ciljeva kvalitete(Šatanová i sur., 2008) Consequently, quarterly, and if necessary, half annual and annual summary reports about the quality costs would be compiled.