Abstract
The literature related to the cost of quality (COQ) and optimal quality level was reviewed and critiqued. The authors have proposed a framework for addressing the optimal COQ within the context of operational efficiency and strategic effectiveness. This proposed framework presents a first step toward providing scholars and practicing managers with a conceptual view of the behavior of the COQ and the interaction between cost categories from both operational and strategic perspectives. The proposed approach is realistic, as it utilizes an open system view of today's modern business organization and the competitive environment in which it operates.
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