Page 54 - Microsoft Word - 00 P1 IW Prelims.docx

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

44