The hidden cost of quality and the intellectual capital

Every firm has his financial statement, and some firm need publish theirs for user' need. The financial statement is generally shown by book value, and if actual value higher book value, then the firms has the intellectual capital. The intellectual capital includes customer, structural, and human capital. Intellectual capital is an intangible asset that is difficult to estimate, and is not show on the financial statements. Understanding how to find the intellectual capital of firm is important, especially for the modem accounting field when determining the actual value of these firms. Some estimative methods had been design for this purpose, but still did not connect with quality control. Within this paper we will first explain how the quality control can connect with the intellectual capital, and what difference is between the two from the hidden cost of quality. Second, we will use the following two estimative intellectual capital models (EICM.) to show the actual value of a firm, the first being introduce from the Taguch quality loss function (QLF) (Campanella, 1999), and the second will be a 'model design' which is extend from general hidden cost of quality, such as Su's Four Model Hidden Cost of quality (Su, 1997). Not only will we compare these two models, but a third model used by the accounting field will also be included in our analysis. Thirdly, The conclusion and the discussion will be given. As the example for this study, we chose a small E-commercial company in Taiwan, and at the conclusion of our paper we will present and thoroughly, discuss our findings.