Page 54 - P5 Integrated Workbook TUTOR 2017-18

Chapter 3

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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