Page 63 - APM Integrated Workbook STUDENT S18-J19
P. 63

Approaches to budgets












                              Advantages                                    Disadvantages

                      An understanding of what                      Cost and time involved.
                       drives costs should improve
                       cost control.                                 Limited benefit if production
                                                                      overheads are minimal or
                      More accurate cost per unit                    mainly driven by level of
                       resulting in better:                           production.

                       –     pricing                                 Difficult to identify cost pools
                                                                      and drivers.
                       –     cost control


                       –     decision making.
















































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