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Chapter 8

Advantages Disadvantages


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

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

– decision making

Illustrations and further practice

Now try TYU question 9 from Chapter 8.

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