new New techniques are often described as contributing to cost reduction, but when cost reduction is necessary it is not obvious that such new approaches are used in preference to more established approaches. Three examples are: established technique compared approach with (a) benchmarking interfirm comparison, (b) activity based budgeting zero base budgeting, (c) target costing continuous cost improvement.
new New techniques are often described as contributing to cost reduction, but when cost reduction is necessary it is not obvious that such new approaches are used in preference to more established approaches. Three examples are: established technique compared approach with (a) benchmarking interfirm comparison, (b) activity based budgeting zero base budgeting, (c) target costing continuous cost improvement.
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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new New techniques are often described as contributing to cost reduction, but when cost reduction is necessary it is not obvious that such new approaches are used in preference to more established approaches. Three examples are: established technique compared approach with (a) benchmarking interfirm comparison, (b) activity based budgeting zero base budgeting, (c) target costing continuous cost improvement.
you are required for two of the three newer techniques mentioned above;
to explan its objectives
to explain its workings
to differentiate its from the related approach identified
to explain how it would contribute to a cost reduction programme.
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