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Quality Costs as a Determinant of Company Value

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Chmielewski M., Malinowska E.
Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia
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2022
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vol. 56
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issue 5
47-62
EN
Theoretical background: Every enterprise generates costs when carrying out its activities. The costs associated with maintaining an adequate level of quality can prove to be not only a destroyer but, over the longer term, also a generator of enterprise value. Purpose of the article: The aim of the paper is an attempt to present the impact of the quality costs identified by the company on enterprise value, as well as the conditions that should be met to observe an increase in its value. Research methods: This study is of a theoretical nature and uses a research approach based on an analysis of the available literature and heuristic methods. Main findings: Quality costs have an impact on the creation of enterprise value. An indication of their share in the costs by type can help the company’s decisions, which, in the long term, can contribute to the enterprise value by increasing the cash flow.
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